AFN,
The good is that I believe I know exactly what is causing this with your vehicle. How do I know? Because I spent hundreds of dollars and used hours of my cousin's time, who is a Ford Certified technician, to figure it out on my 1995 Mercury Mystique (the same as a Ford Contour). I believe the issue you are having is caused by a deterioted wiring harness (also known as an engine harness, and Ford will reference this issue as a faulty Heater/Blower switch). It is not the wiring that is actually the problem, but the protective coating that Ford chose to use on them, it is very poor in quality. The coating will become very brittle and crack causing shorts, grounds, etc. with my car, it began when it was really wet or humid, but will now happen all of the time. This problem WILL only get worse. The good news is that if you have less than 100,000 miles, Ford has a 10 year/100,000 mile warranty on the part, and will replace this at no cost. The bad news is that if you have more than 100,000 miles, this is a very costly repair and part, to replace. I went so far as to purchase a 95 Ford Contour (as long as it has the same engine type, any 95-97 Contour or Mystique should work), with less than 100,000 miles on it, so that I can have the wiring harness replaced on that vehicle and use the old one on my Mercury. This is a difficlut do-it-yourself project, which I would not recommend to most people. If you have any questions about the Ford extended warranty, call your local Ford dealer, or 1-800-392-FORD, for the Ford motor company. You can also find more about this issue at the following page of this web site:
Wiring Harness FAQ

Some of the symptoms that you have written could be caused by several different things, but they are the EXACT same ones I have, specifically the car just driving along and the RPM just going down with no bucking, rumble, nothing. The only thing that can cause that, that I know of (I am not a professional) is an electrical problem, and it is almost certainly the wiring harness in this instance, with this vehicle type. I hope this helps! Please let me know if you have any questions. I just wish that Ford had spent the extra few cents to use improved wiring. Also, from what I understand, the replacement wiring is the same wiring as was used originally.
-PeruvianHighlander


95 Ford Contour SE ATX:-( 84K V6 95 Mercury Mystique GS MTX 134K V6