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First off I have a 1999 f250 diesel with the noisy torque converter. It also has a banks trans command that I'm getting a delete plug to disconnect it because it shifts at awkward times. Lately though it has gotten to where I will start backing up and it will lose power and make what sounds like a dieseling sound like a car with to high of compression. If I give it more throttle it seems to go away. I thought mark said that that could be a sign of the transmission getting ready to fail to someone else with a similar problem but can't find the thread now. Could I be just the trans command not working right?
It could be the torque converter clutch drifting on. This can be caused by a bad torque converter, worn pump, leaking seals, etc. A Trans Command will tend to make this worse.
Yes, I think you need a converter. You can disassemble the pump and measure the pieces a good manual will have pump clearances in it. You can get a manual from Automatic Transmission Service Group.