Hi,
I read your post and it sounds similar to the problem I am having.
I have a 97 ES300 with about 100,000 miles, and my speedometer, odometer and cruise control are not working for about four months. The Speedometer (analog) shows zero, the Odometer (digital) is not lit and does not show anything, and I have error code P0500. I replaced the speed sensor on the transmission with another one from a junk yard and did not fix the issues, although it could have been a bad sensor... My original speed sensor did not have stripped gear and it seemed ok.
A few months back I bought GPS and I was happy that I can read the speed from the GPS so I did not bother to fix the speedometer/odometer/cruise control. Everything else seemed to work properly, and the dashboard seem to have light and work (with the exception of the problems above).
Lately, I noticed that when it is colder outside (less than 60 Fahrenheit) and I start the car, it hesitates about 2-5 seconds before going into the first speed or reverse, and does not shift to second until it goes to about 4000 rpm. This shifting problem does not seems to happen when it is warmer outside, or when the engine is warm, or after driving about a minute. I also noticed that if I start the car and wait about 30 seconds before putting in gear the problem does not seem to happen even in the colder weather. I am not sure if the shifting problems are related to the speedometer/odometer/cruise control problems.
Are this the same symptoms you had ? Was your speedometer digital and not lit?
Kind Regards,
Florin