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Re: C4 won't shift into 3rd gear when cold
The stuff you see in the bottom of the pan is common. It is probably from the initial wear in of the bands and clutches. I doubt you have done much damage as long as the fluid doesn't show any sign of burning. You said it was still bright red so I wouldn't worry about the residue in the pan.
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Paul
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retired mechanic after 35 years
specialized in Holley carbs and Ford Automatic Transmissions
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