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shift kit would definately improve the life of the tranny and should show improvements in mileage. factory settings are "slushy" so you get a smooth transition from one gear to the next, but this causes more wear on clutches and i'd assume less efficiency on the motor.
Are you saying that though it'd be good to make it run better, it causes more wear? To work correctly it causes more wear?
Also, the junkyard has a c6 for $175. I found a rebuilt c6 on ebay on $475 plus shipping. Are either of these a good idea?
not sure i understand your question. factory settings are such to provide a smooth and comfortable transition from one gear to the next, not necessarily the most efficient way. firming up the shifts and reducing the "lag" between shifts will improve efficiency but will make the shifts more noticable. as far as the junkyard tranny, always figure it will need a rebuild, you never know how long it has been sitting up. you can rebuild the one you have for the cost of the new one and save yourself the shipping cost.
You might concider buying a Hayes (or Chilton's) manual and look it over and see if you think rebuilding your own transmission is something you can do. I got an estimate from a local shop for $300 with me pulling the transmission. I rebuilt it myself for about the same money, but that included a new torque convertor, shift kit, fluid and the Hayes book. All things that the shop would not have provided.
AOD's are non computer controlled, but they do have a TV cable that needs to be hooked up to properly work (you'll kill the tranny quick if it's not hooked up).
EAOD and E4OD are computer controlled.
I have no info on the swap, but my guess is that if you have limited funds / experiance / tools then just trade the AOD for a rebuilt c6. The c6 is stronger. Overdrive is nice though.
How much driving do you do at 45mph+? That's really the only place you're going to see an improvement. If you're on the highway 90% of the time it may be worth it to make it work.