get a second opinion on the milky oil in the tranny. No offence but sometimes some guys will try to make a sale, especially if they think the owner doesn't do his own work on things like this.
Also, if it is indeed milky, find out why water is getting in your tranny.
Thanks John. Mr. Lube charges $60 per case ($180 for trans + xfer + rear diff). The Mitsu dealer says the gear lube is fine as I make them check it every 6 mos or so. The Mitsu Guys will charge less.
I was missing a vent plug on top of the trans that probably fell off somewhere over the US. The plug was installed 2 mos ago, but I never swapped out the gear lube. Anyways, the trans is grinding when down shifting from third to second (on an Oct 2008 tranny rebuild?). When the Mitsu Diaqueen gear lube from Jack's Trans arrives, that'll go in the transmission case right away. I'll have the clutch and brake fluids flushed when I have the timing belt/balance belt/both tensioners & pulleys/water pump job done this November.
