The "reaction shell" is a common part to break in the 700R4s/4L60s. When it goes you lose reverse, 2nd and 4th. 1st will still work fine.
Regardless of what's wrong - you're likely in for a tear-down and many, many updates if you want to make all efforts to make a "best" repair. HD shell, new 3-4 clutch pack, new sprag, oversize servo, kevlar brake-band, 5 planet pinions from a 4L65, modular seals instead of rubber rings, etc. I just got done doing my own in two rigs. A 1986 and a 1992. I had to buy two special tools that cost me $50 in total.
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Today's Featured Article - Hydraulics - Cylinder Anatomy - by Curtis von Fange. Let’s make one more addition to our series on hydraulics. I’ve noticed a few questions in the comment section that could pertain to hydraulic cylinders so I thought we could take a short look at this real workhorse of the circuit. Cylinders are the reason for the hydraulic circuit. They take the fluid power delivered from the pump and magically change it into mechanical power. There are many types of cylinders that one might run across on a farm scenario. Each one could take a chapter in
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