oohh, not a standard!!
First things, your 242 has gears and a chain, and unlike a 231 it also has a differential inside of it!! When you're in full-time, meaning that you can be in 4wd on the pavement, your putting power to the front and rear but there is a differential between the two that allows slippage like when you're going around a corner and the front wheels are on a different arc than the rear wheels. This is just a straight up differential with no clutches or any other viscous couplings or anything to get messed up, so you really can't mess it up. then when you're in 4wd part-time, there is no differentiation between the front and rear axles....this is what you want for snow or for offroad light use. 4low is also part-time in that there is no differentiation between the front and back (don't use it on dry pavement) but the gears are reduced by 2.7 and you have way more power...use this for wheeling, it's much easier on your motor and transmission!! 4hi offroad gives more resistance to your motor/tranny but with the same gear ratio that you use for getting somewhat decent gas mileage on the road....so for anything moderately hard you're going to be taxing the motor and tranny. so use 4low as often as you can offroad, it is your best friend. 4hi is used offroad when you need lots of speed or wheel spin....
Anyways, your auto tranny is slipping BAD!! This is not a good thing. you need to not be offroad or in 4 at all before you can service the tranny. don't go get it flushed unless you want to put a new tranny in it next month. DO go to the stealership, give them your VIN and ask for a tranny filter kit which comes with the seal. Then ask for some tranny fluid, it's +4 or something, I don't recall exactly off the top of my head. I believe you'll want 5 quarts but again, i'm not positive off the top of my head, search for a thread detailing the tranny fluid swap process. Then you'll want a big drip pan, unbolt the tranny pan, drain into drip pan, then remove the entire tranny pan. Scrape old gasket off, unbolt the plastic thing with the mesh screen, that's the tranny filter, and replace with the new one. Clean the pan up real good and put the new seal in place and put the pan back on. put about 4 quarts in, start the motor and at idle check the dipstick. Give it a little time to warm up as the fluid level changes with temp. IIRC, and this was a while ago, my wifes KJ took between 4 and 5 quarts with a fluid change. i'm actually going to be doing one this week too.
This only changes about half of the tranny fluid. you should notice a significant improvement over the way it was prior to the fluid change. Drive around and go back to the stealership and grab another 4-5 quarts of the recommended fluid. This time you can just drop the pan and shouldn't hvae to change the filter again so soon. it will take a little less fluid to fill up without changing the filter, but only about .25-.5 quarts approximately. After doing the second fluid change you will have replaced approximately 75% of the original bad/smoked tranny fluid and the tranny should be acting like new. After about 30k miles, change the fluid and filter again and keep changing the fluid/filter at a regular interval of maybe 50k after that and your tranny should love you long time.
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