Well good news ( fingers crossed ). Had the transmission checked out by a 30year experienced transmission specialist. He said it was typical of a car of this age and mileage and nothing to worry about. He said that my options were to live with it or swop the gearbox....which as we all know is big bucks.
So, it's new ebc ultimax front brake discs and ebc pads and then four new boots and hopefully some pleasurable (low cost?) motoring
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1998 S8 Silver with Black, Solar roof, blinds, BOSE- who needs gears anyhow!

2001 Jeep Grand Cherokee 4.7 V8
2010 Buell Ulysses XB12XT- the final edition