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kickdown cable adjustment - help 700 1997

My sons 87 wagon is reving very high and not shifting out of 1st and second on cold mornings recently. I had taken all the slack out of the kickdown cable last year to remedy this problem but it has resurfaced. I lubed the cable and it seems free to move but the cable is set very loose and any tightening seems to make the car shift at even higher rpms. The car shifts great when warmed up but races to 3500+ rpm before shifting when cold. The fluid is clean and less than a year from a full flush. There is a very small crimped metal ring around the kickdown cable that is visible, is that normal? any suggestions?






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