Well, Here is the statement from JIMSMITH.. mod and trusted engineer...from 2003 no less...
""Dirt, varnish, burned transmission fluid by products and other foriegn materials are not included when the transmission is built at the factory, and any transmission relying on the accumulation of these foriegn materials in strategically important locations to operate is already broken."" --JimSmith
from :
http://www.peachparts.com/shopforum/showthread.php?t=82890&highlight=magic
Working for Texaco does not make one immune to urban myths....