Hello everyone,

I am new here (first post) and I am hoping someone could give me some advice or possibly make some sense out of the problem I am having with my transmission.


I currently rebuilt my car's transmission (w140 , 95 S500) which was having problems with no reverse and high RPMS on the freeway.
I have had the car since 2010 with both these problems, although the reverse was intermediate it actually went out completely 3-4 months after I got the car.


Car had been siting since and after 4 years of sitting in the garage; I took on the project this January and completed the overhaul a couple of months ago.

I worked little by little on it in my basement after long working hours. As expected B3 reverse plates were worn completely, and some plates were worn but not too badly. Opened and cleaned the Valve body completely to the T and made sure all the things were in spec. I installed all the seals, clutch packs and gaskets that came in the kit.
The only things I re-used from the transmission were the steel plates, the two bands and the converter (dumb me for not changing the TC)

Now my car is back on the road. It needs little adjustment because it is shifting a bit on higher RPMS but it is barely noticeable. No slipping, no flaring...it is simply perfect and my reverse has never been any better.
It kicks in gear nice and firm and has plenty of torque. Never slips and I don't have to wait 5 seconds for it to engage like some people that are having that problem.

The issue that I am having is the High RPMS on the freeway which EXISTED ever since I got the car.
I am rolling at 3700 RPMS at 80mph.

This is a 722.370 4 speed Auto with a Non-Lockup Torque converter.

The car starts in 2nd and kicks 3 and 4th accordingly.
I know 100% i am in 4th because i can count the gears as I am speeding and I can downshift to 3rd from D and the RPMS move up higher.

I checked my rear differential and I have the correct 2.65 diff MB put on the 1995 V8 5.0 S500's. It even says so on the Dif housing 2.65.

The Torque converter is the only thing I haven't changed and now I am thinking this could cause the issue but not sure. If it was the TC, wouldn't the car have issues on each gear and even at start.

What could it be? A full rebuild did not fix the high RPM issue.
I am running out of options. I am getting a used TC from someone who has a few of these cars for parts but to I am not too optimistic that it will fix the high RPMS on higher speeds.

To give you a better idea what my car does, here it is.
https://www.youtube.com/watch?v=VLyRK7GOnZs

This is where it should be (from someone else's S500 of the same year)
https://www.youtube.com/watch?v=Cjm1ZFimLK8


So any ideas?
High RPMS on freeway. I also noticed during kickdown from stop, the car will pass redline in 6K RPMs and changes to 2nd gear at 7 RPMS.

I am uploading some pictures of my rebuild.

Attached Thumbnails