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Re: What is this loose cable inside the engine bay?
It's a cable to the valve body in your transmission. It's fairly important in a TH350, and VERY important in a 700R4. It pins onto the throttle at the bottom. See that slot? It is adjusted such that it is usually pulled fully at wide open throttle (it will not move at all for the first half of your throttle as there will be no contact yet).
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