Aredub,
I feel so bad for disappearing from the forums for the past 6 weeks, because I could've answered the FWD light. Life got too busy.
New Year 2001, my Solenoid C went south. Turns out that one of the wires from the TCU to the Solenoid C decided to detach itself from the Solenoid. This lead to the 50/50 distribution, 14MPG, one new Solenoid C, and 4 1/2 hours of labour at the dealer.
While the Solenoid C failed, it didn't matter whether I had the FWD fuse in or not. Car stayed 50/50 split (as it was designed to as a fail-safe), and FWD light wouldn't come on. TCU did register the Solenoid C code. At first, the FWD light was intermittent, but then it went completely, and I had a lot of fun driving 50/50 on snow, as the back end came out SOOOOO easily.
I'd keep an eye on the binding issue just in case. You should feel it making a simple 90 degree right turn, as I had, if it turns out the Solenoid C was the culprit.
What I'm curious about is how the new TCU has affected the shift points, and fuel economy. Did you end up getting a new one? I sure would like a crisper 2-3 shift, and would sure like to get rid of the morning start acceleration pulsation. As it stands right now, my 2-3 is SUPER long (greater than 1 second) when the tranny is cold, and smooth-long when it's warmed up.
What are the odds I can borrow your TCU at LaFayette?
VK