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I think you are right in saying the part is a tail shaft bushing, the ID of the bushing looks like it is the same as the slip yoke OD. I haven't droped the drive shaft again to compare, but in comparing it to the seal size that is how it measures up. I did look at the slip yoke when I installed...

I have had speedometers jump around because of broken or worn teeth on the gears.....if it is an electronic pickup in the transmission, I guess it could be a bad sensor. They may use a halleffect type sensor to pick up a rotating magnet in the transmission or something like that. Maybe a bad...

I droped the drive shaft on my 88 TC to change the u-joints and replace the leaking rear trans. seal. After a test drive I found the new seal leaking also. When I went to get another seal, they had a kit which consists of a seal and a bushing? Of course there are no instructions in the "kit"...