Engine/Transmission (1994 - 1998) Weird transmission!!

[Bluhaven]

I have a friend with a 97 dodge ctd auto, we were just driving down the road and the speedo started going crazy and the transmission came out of gear, wouldn't go anywhere. He has had a problem with the cruise going srewy before, set the cruise and it would speed up, he would fix that by cleaning the sensor in the tailshaft. So he figured he would try it this time and it's worked ever since. Any Ideas whats going on?