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Yes don't force the stick, it should stick out a couple of inches when you feel the tip of the stick touch bottom. What works perfectly for me on my 96 is top the trans off cold to the bottom mark on the stick. Check the trans hot and it should be at the top mark on the stick.
Not to bring up a problem but the 96 722.6 transmission was the first year and very prone to problems. If you ever have any problems with this replace the transmission with one from a 1999+ V8 or V12 vehicle.
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