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I've got two cars with early C4's with the vent tube coming out of the case above the shifter area and both are blowing fluid out at the track. Both have Lokar firewall mount dip sticks which I suspect are mis-calibrated causing an overfill condition. My other car also has an early trans but uses the stock dipstick setup and doesn't blow fluid.Has anyone else experienced this? The later C4's have the vent on top of the tail shaft housing,right?

I fixed the problem on one car by hooking a hose up to the vent tube and ran the hose to a fuel filter mounted above the valve cover. Now if fluid does blow out it runs up the hose and accumulates in the filter and then later drains back into the trans.I'm going to fix the other car with the Lokar DS the same way.
 

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Check the lokar stick is right..FULL Level should be about where the o'ring sits.If ok a breather is the go.I have a small vented catch can that can drain back as you say.
 

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You can remove the existing breather tube and install a long pipe going into a collector bottle.

The correct fluid level is even with the pan rail and case.
 
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