Your mismatched tires are most likely the issue. For a minute, I thought you had the 5.0 AWD, in which case the mismatched tires would be an even larger issue.
I can explain why the code reader was unable to give you more detailed information. The ABS light being on is the key - this indicates codes are present in the ABS module, which cannot be read by a conventional code reader. If you attached a reader with ABS capabilities, you would most likely get an error in the format Cxxxx rather than Pxxxx. In your case, the problem is so bad that the ABS module is sending bad (or no) speed information to the PCM, thus triggering the P0500 code.
After resolving the tire issue, you should swing by Advance Auto Parts, or somewhere else that has readers with ABS capabilities and have the codes cleared (AAP is the only place in my area that has ABS capabilities on their free scanner).
Well, This thing is handing me my a$$. I went by AAP. They were busy so the guy ask me for my DL and handed over a scanner that has ABS.
I got the same old P0500 (listed twice) then something strange. It read:
"No Response From ABS Module" That's strange. So I go remove a known working module from a friends 99 xlt 2wd 5.0. The only thing different is the paint job.
I go back to AAP and again, No Reply from Module. Damnit!
I take his back and reinstall mine. My module as well as his has the same number: XL2T-2C219-AB
I can not find a schematic drawing of this module or even the PCM. I did do a little poking around with my vom and found something that caught my eye.
I pulled fuse #3 (50amp) 4WABS. I check both sides of it before I removed it. It checked good. I did however note one side of the fuse bus had 13.7 volts DC.I probed the other side of the socket and got 0.85 Volt DC.
Correct me if I'm wrong, but there should be nothing, nadda at this point. Again, I could be wrong. Just seemed strange to me to be reading ANY voltage there.
I removed the connector to the ABS module and retested it. The .85 I had went away after I removed the multi pin connector from the module.
I reconnected the wiring to the module and walla! the .85 has returned. What kind of freaky feedback loop I have going on here.
This just gets deeper and deeper. I guess the next stop (as badly as I hate to) will be one of the local dealerships. I called both in town and both has a flat rate of 95 bucks just to connect to my ride and tell me what they found.
Any ideas? Know where I may find a print of the modules?
Scratching me head.
Rick