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On the side of the transmission? On the same bracket that the shift cable goes to? That faces the Transmission with wires and 2 metal lines?lines what? That is what is described above under section p

No. This allows fluid to engage the lockup with the switch on the transfer case lever to make for easy shifting while moving. 5th gear gives it less resistance A normal MT600 series transmission doesn't have that external valve at all.

That is to put the transmission into 5th gear for easier shifting of the transfer case. If it malfunctioned I would think it would be locked up all time then

Yes you should have a 200rpm drop in 4th to lock it up. 5th works in lockup only

@Swamp Donkey has a good manual for this transmission. Either you have a very high modulator pressure or there is a set of springs on the spool valve that makes it go to 5th that is adjustable with a little t-pin that needs to be adjusted Are you feeling the converter lockup? I've rebuilt a...

You should have zero air going to the transmission. Only air lime should be a vent to the frame rail which goes to the stack. You need to put a pressure gauge on it so you can see what it is doing in 5th.