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who built the trans? Did you get the specs, clutch clearence? How many frictions did they stuff in? Convertor seated properly? Since its not a total disater like a pump/convertor failure, id lean towrads clutch dragging and slowly burning up.
 

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I have a fresh AOD in mine and no problems so far, no smoke or anything out of the tranny. I have a cooler on it and thats about it, I did remmeber the convertor was tricky to get seated right tho.
 
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