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Here's a tip, guys. My differential pinion mount bushings were trashed. Falling apart. I replaced them and oh what a difference! I put the car in gear and no more THUNK. It is now smooth and quiet. Also, my tranny guy rebuilt the TH 400. When it shifted it was uncomfortable. It was supposed to be "sporty". Now it is a little more sporty and less abrupt.

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It's amazing what a couple little pieces of rubber will do in quieting down noises. 

GEN III 5.7L "LS6" Engine swap
TKO500 5 spd.
3.54 Dana 44
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in Forum: C3 Engines, Driveline and Handling
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