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Well, I finally got my cougar to start (Carb needed to be adjusted) anyways I took her out on the streets and I ran into another problem, my car wouldn't go past 40 MPH and when I tried to go over the car would make this weird click clak sound. A friend told me it could be the engine that is low on compression but im pretty sure its the tranny because when I shift into DRIVE sometimes it doesnt want to run but when I shift into REVERSE there is no problems there at all and it actually runs, so what could it be? Engine or tranny?

I also have a leakage on the drivers side its leaking red oil so pretty sure its from the tranny and not the master brake cylinder or power steering (BTW I took the 2 screws out of this part to observe the leakage)

20111126_135532.jpg
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Thanks everyone!
 

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The picture you are showing is the control valve for the power steering, it uses the same fluid the trans does.

As for the other part, it is hard to say without more info or hearing/seeing what you are talking about.
 

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Have you checked the trans fluid level? Low fluid level will make it slip, and also you can tell if the clutches have been burned up or not. Their should not be anything metallic or black/chunky on the dipstick...Also smell the trans fluid and see if it smells burnt or not. You can tell a lot just from looking at the fluid...
 

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+2 on smelling the fluid. It will also look more brownish if it's burnt. As for the leaks - power valve leaks are very common - check the fluid levels in the PS pump and be sure to only use type F fluid for it and the trans.....
 
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