Why it happens
This is caused by oxidation build-up on the dimmer switch contacts. There is a low voltage across the thumbwheel switch that the module reads and adjusts the light output accordingly. There isn't enough voltage to overcome the oxidation layer & therefore the resistance varies across the switch. So, when you rotate the thumbwheel you rub off the oxidation and get a constant resistance until the oxidation builds up again.
Ford eliminated gold contacts for the cost savings in many switches and contacts that were put in place to prevent these problems.
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2003 300B BLUE (stolen for 9 days)
PI 3000 TC, 4:10 gear + girdle, Dynotech Driveshaft,
bulletproof trans, 2nd trans cooler + deep pan & Redline D4 ATF
Steeda UDs, Rear engine cooling kit, Denso plugs, high capacity oil filter on frame, Reinhart superchip
+ gauges, SilverStars, & fire extinguisher
2008 GMC Envoy SLT
2006 GMC 2500HD Crew Cab/8' Bed; 21.5' long