95 E320 Wagon ASR/ABS Issue
 

My car has had an issue with the ASR/ABS since I bought it 2.5 years ago. As soon as I would go above about 10 mph the ABS and ASR lights would come on. This wasn't a big deal other than I was told this was the reason my cruise control was not working. I really dont mind not having ABS.

While replacing the wheel bearings I noticed one of my wheel speed sensor wires was cut. I bought a new wheel speed sensor and installed it. Now the (car is skidding) light comes on for a moment followed by the ASR light. The ABS light remains off. When braking, the car jerks to the right and left like the ABS is trying to correct a slip problem it is not having. Also, it doesn't stop very fast at all. If I disconnect either of the wheel speed sensors the car is driveable again.

Is it possible my hubs are rusted enough the little bumps the wheel speed sensor picks up on are not high enough causing the controller to get mixed signals? This was a northern car (never buy a northern car over 10 years old) and it is a little rusty. Is it more probable the issue is in the ABS controller itself? Are there wheel speed sensors at the rear wheels? I didn't see any. Is there something else I should look into?

Thanks in advance for the help.