I rememberd about this but couldnt remember specifics so I had to look it up. This is coming from the mouth of a VERY respected transmission man....(
@transman731)
ok, here we go, i will start by saying that if you go to 100 transmission shops, 50% will agree with me.
atf is basically hydraulic fluid with detergents and dye.
any particulate matter in the fluid (from wear), sticks to the inside of the drums centrifugally.
when you service the trans (drop pan, drain and fill ect.) you remove a portion of the fluid. when you add new fluid back to it, you are diluting the new fluid with the fluid that remained in the trans and converter. an example, on a honda, dry, it holds between 8-10 qts, a drain and fill with have you add 3-4qts back to the trans to get it full again.(approx. 1/3 of total)
when you do a flush, you are removing all of the fluid, and replacing it with all new fluid. all of the new fluid contains a large amount of detergent,which was fine when the trans was new. since the trans has wear, all the particulate matter that has been spun to the inside of the parts is now getting washed away and "fluid bound", so it's now getting circulated back through your trans. this doesn't happen on a roadtest, it happens over time, so the customer drives away feeling confident he has done the right thing. 2 months later he shows up at my shop with a transmission problem. all the crap has been collected in the filter and sucked the filter shut and starved the trans of fluid, not to mention run through all of your bearings and bushings, and don't forget playing hell on the valve body.
in the case of a honda, the filter is internal (sump) , the valve body has 2 dime sized filters, and there are 12 tubes(smaller diameter than a pencil) that contain filters in the end of them. honda uses clutches that are "fuzzy" when they start to breakdown, they can clog the filters under normal conditions, flushing them really screws them up.