Thank you for all of the posts. They helped me with dealing with the dealer. I brought a friend with me who knows car stuff just to make sure I was not being taken. So this is what they said. They showed me the transmission fluid and showed me what they pulled out and what they put in. They claim that it is running perfectly after they put the new transfer clutch in and that there was still some of the old transmission fluid that was in it that seemed to gunk it up again. I am still not sure when or if anyone put transmission additive in my car (I have taken it to oil change places and different mechanics). Anyway, they said they did check the transmission fluid before they determined I needed a new transfer clutch... they also put in new solenoid. They explained that 1/4" difference in tread on tires can over the years tear up the transfer clutch and that when mine was pulled out it was awful. They said that after the 2nd transmission flush the car was only doing the popping occassionally and to bring it back in in a week or so and they will do another flush (free of charge). If it keeps on or gets worse then I will need a new transmission (because I might have driven too long with a bad transfer clutch). They said they would credit me the $1,500 I paid for the transfer clutch toward the new transmission ($2,200) so I would only have to pay $700. They really seemed to explain things better to me today. The technician also explained that even if you have all the same tires on your car you can destroy your transfer clutch if they are aired up differently (I had a slow leak in some of my tires over the years). When I drove it today it wasn't popping and drove smoothly. Anyway, maybe I still got taken to the cleaners but I feel better with the fact that if it turns out I do need an all new transmission they are going to give me a credit for the work I just had done. Thank you for everyones post.