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I have tracked down a small leak to this area. I have heard when the modulator has a vacuum leak it pulls the fluid. So I am think some fluid must be in this area and will leak out just not sure how much.
The seal is a simple o-ring. Very little fluid will come out when you remove it.
When the diaphragm ruptures, the engine vacuum will suck transmission fluid through the cracks and up into the engine. This doesn't mean there's a lot of fluid around the modulator, just that whats there can get sucked up.
Also, there is a pin that goes in the end of the modulator. If it comes out with the modulator, be sure to put it back in.
Mike, since you posted that picture. On the same side of transmission up toward the front there is a around cover with four bolts. I may have a small leak around this cover. Do you think you can just get this gasket from somewhere and what is the name of this area that is being covered? Thanks again.
That's the cover for the intermediate band servo and regardless of the name it's not just the cover, that's actually the servo. It sorta comes out in one piece.
The part number for the gasket is:
D4AZ-7D026-A Gasket, intermediate band servo cover.
There are a few hundred out there, not counting the regular auto parts stores.
Just to pick one, Green Sales, Cincinnati, OH has 77 (800) 543-4959.
Here's the illustration from the Ford parts catalog.
The parts store says that there are 3 different modulators, determined by color band. I checked mine, but it is so old, I cannot get a color off it. I have a 460/C6. Is there anyway to determine the correct color band without having to try them all?
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