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The grinding from 1st to 2nd is a known issue with the tC and most cars that i know of. It only does it early in the morning when the car is cold because the Tranny fluid hasnt warmed up enough to lube the gears.

I just recently installed the TWM SS Stage 2 (love it) and the issue has gotten better but didn't get rid of the problem. Some people have actually switched to Synthetic Tranny Fluid Redline MT-90, i think. I havent switched just yet but am considering it.
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