What is wrong with this 700-r4

Hi All, first time posting, but have got great info here with other problems. I traded for a 1989 Silverado 1500 4X4 with a tranny problem. Reverse, 1st and 2nd work fine, 3rd and OD got nothing. actually it seems to quit pulling about 40 mph period. It also blows 4WD fuse whenver it is shifted out of 2wd. The guy I got it from said the trans had been went thru(no specifics given) and the transfer case bolts were stripped out so he dropped transfer case, helicoiled them and put it back together. He said that it was leaking from transfer case being loose, got low on fluid, and the problem started. I dropped the pan, real clean, fluid looked and smelled ok, no parts or pieces in pan. There were however, loose valve body bolts. the lever on passenger side of valve body was really loose, just hanging there basically. I made sure every thing i could get at with pan off was tight. put the pan back on, fluid back in it, no noticeable difference. Does anyone have any ideas? Could the loose valve body bolts have blown out some gaskets or something in there possibly

Typically, no 3rd and OD is worn out 3/4 Clutch Pack; however, it could also be a valve body issue which causes no fluid getting into the 3rd gear circuit (which means the 3/4 clutches are not being applied).

The valve body is torqued to 11 N-M (can't remember the value in inch-lbs). Since you had some bolts loose, it is possible that the valve body gaskets are bad. No way to tell with out dropping the valve body.

Good luck.

//2000CAYukon

thanks for the info, I will have another look in there and post back the happy results(hopefully)