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I have a 93 F-150 4x4 with a E4OD transmission and I was driving it about a month ago heading home from work and I noticed when I came to a stop and took off the transmission would not shift past 2nd gear. Since then I have no drove the truck besides a couple times to test drive it. I have put a new TPS on it, unplugged the shift solenoid pack to put it into "limp mode"(stayed in 2nd) and changed the fluid and filter. My speedometer doesn't bounce around or anything so I figured it wasn't the speed sensor on the rear axle. I've noticed when I have it in drive and I'm in second winding it out at high rpm and I manually downshift to second the truck will jerk a little like it is downshifting from 3rd gear down to 2nd gear.
I had the same thing happen to me. Had to get transmission rebuilt. Seemed that the third and overdrive used the same sleeve for clutches. Somehow the sleeve got to slipping and allowed the clutches to eventually burn out. Luckily mine was still under warranty at the time and only cost me 250 deductible. They were not able to save the housing and it cost almost as much in flushing as did the actual parts to repair it. Maybe you should be looking for a used tranny.
Well it's not that OD and 3rd share the same clutch, it's that OD is applied on top of 3rd. If you smoke your direct drum (which is used in 3rd), you will lose OD too.
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