I have a 1990 Ford F150 XL 4X4 with a 302 engine.I had a problem where the fluid came out the dipstick tube which poured it on the manifolds and caught the right side of the engine on fire.my dad was the previous owner and he replaced the seals and gaskets in the transmission and also the fluid, is there any way it would do this if it does not have enough fluid and it is overheating?What could cause it to come back out the transmission fluid dipstick?
This is a rather common problem with that transmission. You have burnt clutches, the trans needs a rebuild. Some people suggest installing an aftermarket transmission cooler, but to be honest with you, I've never seen that work, once the transmission starts overheating so badly that it starts burping fluid out the vent, or worse yet; out the filler tube. Wish I could give you some better news than this.
Why don't you try to replace the shift cable and adjust it properly before condemning the transmission. Rigged shift cables are asking for trouble.
