I picked up my Montero almost two months ago now and its had a hard 1-2 shift when cold ever since I got it. I've flushed the fluid (using the technique shown in the FAQs) and replaced it with the SP III fluid. It shifts smoother now for the most part but it still holds onto first for way too long when cold and then shifts pretty hard. Someone mentioned I may need to adjust the throttle valve on the trans but I'm not sure were it is or how to do that. I have the FSM but I couldn't get more than just references to that valve, nothing specific on how to adjust it. Anyone want to help me out here?

96 is electronically controlled, no TV cable. You have a sticking valve or shift solenoid. Might want to drop the pan to change the filter and inspect for debris. If there's excessive debris, that's bad. If it's relatively clean, replace the filter and fill up with fluid. Then add 1/2 a can of Seafoam TransTune. Drive for a couple hundred miles. Drain and refill the fluid again. Drive for another couple hundred miles and drain and fill again. Should be fine after that.

You have a shift mode switch on the 96SR, right? Positions power, econo, and hold? Set it to H and see what happens. That starts the truck in 2nd, iirc. Power upshifts late and downshifts early. Econo upshifts early and is reluctant to downshift.

It's Power, Hold and Normal (no indicator light in dash) on my '95. Sounds like his thinks it's in Power.

John B.