Had the transmission rebuild a year or so ago after it went out on a trip to San Francisco, some might remember. Two days ago when I went out for a short drive, I smelled a burning smell after start up, didn't pay much attention to it as it disappeared immediately after exciting the driveway. Parked the 300SE for 30 minutes and after I drove it again back home, doing 25/30mph, within a minute of driving there was a horrible grinding sound from underneath (transmission), the rev's shot up to 4000 rpm and would continue rising without downshifting to 6000 rpm with the foot on the throttle . The same burning smell I smelled before was there again for a short time. Pulled over, shut the car down, restarted and drove away; noise was gone but the rpm would climb up to 6000rpm when going over 20 mph. Oil is still clean. I did find a little bit of trans fluid on the Kickdown Solenoid, not enough to drip down on the ground tho.

The transmission is still under warranty so I'm not to worried about it to much, but like to hear some opinions about what it could be before contacting and sending the car back to the rebuilder.

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1979 Black on Black, 300CD (sold), 1990 Black 300SE, Silver 1989 Volvo 780, 1988 300CE (vanished by the hands of a girlfriend), 1992 300CE (Rescue).

Sun Valley do the rebuild?