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ok starting off I got a 89 k1500. Just put a brand new 350 small block from jegs in it. Drove it after I timed it. Drove good the first day all day, I drove it roughly 30 miles around town. Next day I go to drive it, no reverse. It feels like it grabs in reverse but it doesn't move. It drives in drive in 2h and 4x4h but the acceleration is not as good. In 4x4 L it drives good. In drive, 1 and 2 it drives. When I put it in NUETRAL it literally drives. I swear in park it felt like it was pulling a little too. It smells like a little burning when I pull the stick but not that strong, the fluid is clean red. Also I can shift from park to any gear without putting my foot on the brake. Also my steering wheel feels like loose. Not sure if that matters but every detail I like to add. I'm not sure if this is a bad sign for the transmission or a cable but if you think it's the transmission should I rebuild or drop a transmission off a truck in the pull a part yard?
 

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1. What trans is it?
2.check TV cable and external linkages, pay attention to mounts and locks on steer column and d shaft.
3. Check internal linkage, shift valve and band adjustments and filter

If fluid is good, does it have a TV cable? Is this adjusted correctly? How about the linkage? Possibly the rooster or shift valve in pan? Mostly sounds like linkage,may be at column.. (Sounds like by description a good spot to start), top, all the way to in the pan...might as well change filter if you have to get that far...could be worse news, but I would start there first, you can see band adjustment and such also, if you end up having to drop pan.
 

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Another idea, if you have a buddy, disconnect linkage at shift shaft at pan...run through the gears by hand, if feels good, and positive have buddy start it set p brake set chalks hold foot on brake while you cycle through gears again...seeing that it goes from prnd21 or prndl or possibly prn0d21, whatever dash reads anyway. That would confirm or eliminate above linkage issues.
 
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