don't know about the power steering problems..but as far as the tranny, is there sensors in the 95 like 96+ that control the shifting.(you did say yours was a 95 i hope). the reason i ask is that it shifts fine until the light comes on..if the tranny slips, its gonna slip all the time i would think. The internals of the tranny slipping would'nt cause a light would it?

96 zetec gl.dynomax exhaust(self bent) KKM intake..Bridgestone Potenza RE-910's...other mods also
87' Ford Thunderbird..Now my daily driver ( the wife uses the contour mostly) true dual exhaust with the super mystery mod.(hey there not even there!) tinted windows and stereo upgrade. the $200 car is starting to be a great car