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C-4 locking up in third gear
A couple of years ago my brothers car was having the same problem but he could tell that the tranny was dragging in 2nd and high when under power. There was cross leaks in the valve body and the low-reverse band was always applied.
Try another valve body that has gaskets in it.
I use gaskets in my full manual valve body, it really helped seal things better and the tranny worked better.
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