So the official verdict is in now, trans guy again says that he would recc the whole trans be rebuilt. Says there is no metal shavings but that the trans fluid was black and his conclusion is that everything is just burning up. Says the official cause of the 3rd into 4th gear slamming is a compression valve of some sort. He said its probably the solenoid is also bad and the cost for just those two is a little shy of having the whole thing redone. $2495 plus tax?!? Man Ive got some decisions to make... dont want to see the LS go but still need to replace wheel bearings in rear and when I had it up to look at things I seen all the boots are busted and will prob need new suspension parts soon too. Ughhhhhhhh
I believe you can get a Motorcraft reman, direct from the dealer for about $1700. It comes with a 3 year/100,000 mile warranty. Same as the engines. I'm pretty sure that includes replacement labor if needed. My buddy at the dealer said there are a few returns on these, but not alot.
You could do the install yourself, with a knowledgable friend, and save $$$ on labor. But then you loose the free replacement labor if needed.
Once people tear these trannys apart, and replace the major internals, they never seem to be right afterwards. I test drove an '05, that made some weird noises when they first started it up at the dealer for me. Like something came loose, bounced around for a few seconds, and then ground up. Upon test driving, "check transmission" came up in the gear indicator screen. It started slipping, and shifting funny afterwards. when we got back to the dealer, they checked their paperwork, and it had been in 2 years/25,000 miles earlier for trans problems. Don't remember exactly what was replaced, but it seemed to be having the same issues as before.
If you want to try to do the solenoid and fluid change yourself, parts and fluid will be about $450, but it also sounds like you need that 4-5 spring. That means pulling the valve body, and tearing it apart. A knowledgable friend would be helpful here too.
Good Luck,
---Mike---