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"Run trans fluid" comes from the fact that later on that's exactly what GM did. (My '91 205 came that way)
Makes it a bit less of a problem if the seals fail on an auto trans application, since the fluid won't be contaminated, but other than that, it's pointless to run ATF.
I have a NP205 and a TH400. I thought the 205's behind autos should have trans fluid... I dont' think there are any seals between the tranny and the transfer to keep the fluids seperate. Now I'm confused...
I cant speak for the autos but my sm465 has a seal in the adapter to prevent its fluid from getting into it. The t-case side doesnt though. My truck is an '83 and came with the 465/205 setup. The factory manual says to use ATF in the case. I use synthetic 80-90w.