Ok, we are taking everything out to get it ready for the new engine. The VSS sits on top of some valve or something that has two hoses going into it and running to the tranny (i think) any one know what this is and what it is for?

 

I know It is for progresive power steering.
pentaq

 

those lines have PS fluid running through them, not tranny fluid

picture = 1000 words

 

The VSS is the entire assembly...the sensor is connected to a gear that runs down inside the tranny.