["I was told it was probably the Manual lever position sensor. The first question I have. Is this the right name, I looked in my Haynes book and the only thing I found was Selector lever position sensor, are these the same thing?"
YES. And to add to your confusion, it is also known as the Transmission Range Sensor.
"When I went to check to see were the sensor was I disconnected the Inhibitor switch multi-plug by mistake. When I did this my check engine light shut off (it was on) and now the O/D light flashes. The car seems drive just in 3rd gear. But there is no sign of any sliping from gear into another."
Disconnect the battery and plug the Inhibitor switch multi-plug back in. You should have disconnected the battery before working on the MLPS.
"My questions here are what is the Inhibitor switch and can this be the cause of my problems?"
Not exactly sure what this is but I would guess that it is the electrical connector for the MLPS. If any of these get wet, you tend to have tranny issues.
Some British terms were used on the Haynes Manual as the tear down for the I-4 Zetec was from a Mondeo (probably 1995) and done in Britain.
The tear down for the V6 Duratec is a 1995 Contour .
