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It has what is called "converter shuddr" a very common problem. In later years Ford switched to a different fluid to correct this problem with better chemistry and all older models of the AOD/AOD-E and 4R70W and 4R75E transmissions can use the newer MERCON V fluid if they originally were built with MERCON/DEXTRON III (E4OD and 4R100 transmissions cannot use the newer MERCON V, it is chemically incompatible with the internal soft parts). Try switching to the new fluid, if the problem persists, get a tube of "Dr Tranny Shudder Fix" available from transmission suppliers for about $10.

Factory Tech, a transmission company in Cincinnati also makes a really good shift kit for that transmission. The guy is a Powertrain Engineer for the Ford plant where the transmission is built. It runs about $85 and is the only shift kit I have ever seen that gives you enough parts to return the tranny to stock (has a new separater plate so you don't have to drill holes in the stock one)

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Q: Why does the transmission jerk in your 2001 ford v6 mustang?
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