The VSS enables the transmission shifting, the speedometer, and the ABS--it's the "speed sensor" for the rear wheels.
On my '88, the signal from the VSS goes to the instrument cluster. The IC processes the VSS signal, sending it to the cruise control, ABS, speedometer, odometer, and the vehicle computer for use in computing fuel and spark needs. I don't know how much your '96 has in common with my '88.
Figure out:
1. Is the VSS sending a proper signal,
2. Where is the VSS sending the signal to? Instrument cluster? Vehicle computer? Body computer?
3. Is that component actually receiving that signal?
4. Does that component pass the signal elsewhere? Does the next component in the chain receive the signal?