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When the guy tapped the pan a few months ago for the sensor, he said the fluid looked really dirty. I just had it flushed and filled with Amsoil fluid not 5,000 miles earlier. Plus, when I check the fluid level at the dipstick, it is bright red and smells fine?
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You probably can't tell by the ATF on the dipstick whether your ATF is burned.
Buy one quart of cheap MERCON/DEXRON III (or DEXRON III/MERCON) ATF and pour it in a clean glass jar to see the color.
Clean up around the tranny drain plug, then drain the tranny pan into a clean container that will hold at least two gallons. Then pour some of that used ATF into a clean glass jar and compare the color to the new ATF. (Pour the clean used ATF back into the tranny.)
If the old ATF is much darker than the new stuff, then you should either have the old ATF tested to see if it's still in good shape, or simply bite the bullet and change the ATF to a fresh shot of synthetic ATF.
Blackstone oil analysis is one source to have the ATF tested. ATF is light-weight oil, so that makes sense, right?
http://blackstone-labs.com/free_test_ford.html
Use the test kit Blackstone sends you, but be sure to tell Blackstone that this sample is synthetic ATF - not motor oil. /ubbthreads/images/graemlins/crazy.gif
To change the ATF, you'll need 20 quarts (5 gallons) of new ATF. I'm not an AMSoil fan so I use Mobil 1 ATF. Follow the procedures in the '99-up FAQ and changing the ATF is an easy job.
2000 model year PSDs could have only the oil-to-air (OTA) tranny cooler, or if it's a late-2000 model it will also have the oil-to-water (OTW) tranny cooler in the bottom of the radiator. If yours has the OTW cooler, then it should never get even close to 240º.
Crawl under the front of the truck and find the two tranny cooler lines coming from the tranny. If those lines go into the bottom of the radiator, then you have the OTW cooler. If those lines go around the bottom of the ratiator to the OTA cooler in front of the radiator, then you don't have the OTW cooler.
If you don't have the OTW cooler, then you need more tranny cooling capacity. First choice is to install the radiator from a 2001 PSD that includes the OTW tranny cooler, and plumb it to the tranny cooler lines per Ford's instructions. But yeah, expect that to cost you around $500.
http://www.thedieselstop.com/faq/9497faq/tsb/tsb/files/002404.pdf
Next best - or in addition to adding the OTW cooler - is to add another OTA tranny cooler in series with your stock cooler, or maybe just replace your stock cooler with a bigger cooler. A good choice is the TruCool Max from
www.dieselsite.com or the stock Ford tranny cooler from a V-10 gasser.
Another alternative it to add a big tranny cooler under the truck, with a big fan dedicated to sucking air through the tranny cooler when needed.
Whatever you do to add tranny cooling capacity, you should rarely see over 205º sump temp, and never over 225º - even in stop-and-go traffic towing a heavy trailer in hills.
Mine has both the OTW cooler and the bigger OTA cooler from the V-10, and I don't have any tranny cooling problems when towing. I haven't seen over 200 in years. /ubbthreads/images/graemlins/cool.gif The most I ever saw - several years ago - was 205. And yes, I've been all over the USA with my 5er, including traffic jams in California, and climbing "the Grapevine" north of LA. /ubbthreads/images/graemlins/warmsmile.gif