Same problem here... but with a few newer parts.
Installed new springs, front hub bearings, control arms, and ball joints. I also did some engine work which had the intake, downpipe and turbo off. So, upon bolting everything up I fired off the engine to make sure everything was fine there. Check. No leaks, no lights.
Car is still up off the floor (all four corners) and the ABS light is ON at start up. Curiosity got the best of me and I put it into drive. The front rotors turn but then stop and kind of struggle as if something was binding it up. Engine off, turn both axles by hand and although there is resistance (normal feeling resistance) nothing seems to be binding. Engine on, put in drive, same thing. Tap gas and it struggles... limp mode?
I checked sensors and wiring and everything appears fine and clean. Sanity check, when I look down at the teeth where the wheel speed sensor goes, on both sides I only see half the teeth. Is this correct? It appears everything is tight and mated correctly but should the sensor see all the teeth and not just half? This is the same for both sides.
I'm thinking of putting the tires on and dropping the car to see if the ABS light goes off by itself and see if it really is in limp mode, but I wanted to post this first.
Thanks.
Scott C.