Re: 2007 Escape Transmission Skipping
If the OD light is flashing, there is a code stored that can be retrieved by a reader. The code will go away if you turn off the vehicle, so if you want it read, don't turn it off.
The first thing I would do is check the fluid level, with the transmission warmed up, in neutral, with the engine idling. It should be on the hash marks, in between the two holes, if memory is working. It takes Mercon V spec fluid.
You should also take a look at the fluid on the dipstick. It should be 'purplish', not brown or black. It should have a petroleum smell, not burned or stinky.
If it is OK, and the level is good, you have a more significant problem. I would check the fuses, as this transmission has several solenoids that make it work. If a fuse is toast, the solenoid cannot move the valve, and make the bands and clutches work. There is also a solenoid called the EPC that adjusts the oil pressure based on throttle input. If you have a heavy foot, it will bump the pressure to make the shifts firmer, to eliminate slippage.
If you put the transmission in low gear, and it maintains power to the wheels, then you can deduce that it does not want to work in 2nd gear, and so goes to 'neutral' when the governor and computer tell it to shift to 2nd.
You likely should talk to a good transmission person locally, and pick their brain.