It doesn't sound like a myth to me, unless you think the info in
this link is FOS. Check out the "700R4 Overhaul Tips" section about 1/3 of the way down the page.
Quote:
I have been overhauling 700's for about 10 years now, and during that time I have learned alot. (Why do I always have to learn the hard way?) I now overhaul, on the average, about two a week (that's average; some weeks more and some weeks less.) I picked up some "tricks" along the way, and have found this unit to be both, a reliable and a desireable transmission after a few modifications.......
....On the 6 cylinder versions (S10 and camaro) I replace the 3/4 apply "fingers" in the aluminum drum with the V8 version, which is lower, allowing one more clutch and steel than the original. In addition, on the 6 cylinders, I remove the aluminum plate and top overrun steel plate from the forward clutch line-up and replace with a V8 version apply pressure plate, allowing one more forward clutch and steel plate. On the same application, I replace the reverse input piston with a V8 version, which is shorter, and will accept one more clutch and steel
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Sounds like the S-10 (i.e. V6) versions are slightly different, although this particular rebuilder likes to make them identical. Can't comment on the transfer cases.