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Sorry about your problems. I recently discovered that my '95 855t had a warranty transmission replacement at 56k miles. I just bought it in January and looking on the bright side, figure I only have 27k on the replacement. The engine's rear seal was replaced at the same time.
Today must be my day for sending people to Ozbrick.com. Here's a link to that site.
http://au.geocities.com/ozbrick850/
Scroll down and you'll see two links to "Transmissions" and "Flushing ATF". From what I've read at various sites, once you experience problems it is NOT a good idea to power flush the transmission. An ATF change might be ok.
Looking at my cars records, it was towed to the dealer 400 miles before the replacement as there was no drive. Simply wouldn't move. The dealer flushed the transmission and 400 miles later it failed completely.
It's also had the PNP switch replaced twice. If you're interested in seeing my car's dealer service history, go to:
http://www.geocities.com/hwy51_guzzi/carhistory.htm
I don't like accepting that yes, it appears the automatic transmission is the 850's achilles heel. As I intend to keep the car for several years, this reality will keep me from modifying the engine for more power as some do. Why add more strain? Modifying the suspension is another story...
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Erwin in Memphis, '95 855t
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