Trouble shooting torque converter?
Transmission fluid coming out of the fill tube could be due simply to the transmission being overfilled. Are there any other symptoms of a problem with the transmission? Does the car move forward when you put it in Drive? Does it shift through the gears ok? What about when you put it in Reverse?
Many symptoms of a bad converter are similar to a bad trans. Slippage, noise etc. There are some trouble shooting methods to help isolate a possible bad converter they again are similar to trouble shooting a trans.
Generally if your loosing fluid out of the vent tube in a TH400 its over full. Fluid level & condition is generally step 1 in transmission tbl shooting.
To answer the question, yes pull out the TC and cut it open.
X2 on the vent tube or it's overfilled. Heat is also an issue with slippage. I'd check cooling lines and vac line to the control module also make sure nothings leaking I can see a pinhole in the vac line causing some problems shifting.
With ported vacuum the trans will not shift until an ungodly hi rpm. You'll be singing the Little Nash Rambler Beep Beep song, and yelling "hey buddy how do I get this thing out of second gear"
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