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The trick to reading those dipsticks is to look at both sides there will be one side that has fluid all the way up. The other side will show a level. Always look at both sides the wrong side has no obvious level on it with fluid going quite high. I have always figured it came from riding on the tube which has oil on it.
Based upon the noise before failure you probably have failing reverse clutches.
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Steve Brotherton
Continental Imports
Gainesville FL
Bosch Master, ASE Master, L1
33 years MB technician
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