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I couldn't even find a listing for 408 anywhere??
The 1996 Ford TSP does not list P0408, so I did a little research on the web...

According to http://www.obdii.com/codes.html, and a few other sites, P0408 means "Exhaust Gas Recirculation Sensor B Circuit High". Don't know what that means though.

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After the new DPFE the car runs better, but I still have the CE light with the damn 401 code, and whatever the hell 408 is.
Did you reset the CEL codes after you replaced the DPFE? I suggest that you reset the CEL, drive it for a while, and see if anything else shows up.

1996 Contour SE Sedan 4D (Royal Blue)
Duratec V6 2.5L 24-valve DOHC
Automatic
75,000 miles
No Mods (unless you call the DMD a mod)
Replaced EGR valve (gunked up), EVR (EGR VR), PCV valve, and evaporative emissions hose (cracked).