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so i know very little about automatics, what is the problem with doing a burnout in first gear?

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The problem is the tires getting traction and the sudden stop in first will damage the overrunning clutch, explosion can follow.

In simple terms.

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ok, makes perfect sense, with what little i know!

so i guess that would be true for any automatic, modified or not?

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Not really... a STOCK VB has the LBA(low band apply)
a RMVB with out LBA the low band isnt applied if
just in drive... if you pull it down into low(1st)
then it applies the band... the thing with the over
running clutch is.. if the tires are spinning and
the ORC(over running clutch.. or known as the sprag)
it can load and unload... that forward SLAM on it
can break it... usually the next hard load on it just
blows the ORC then.. (this is the important part)
the forward drum will turn 2.2 times faster than the
engine rpm... pretty much anything over 6200 engine
rpm and the drum will centrifugally explode... hope
that gives you a idea of what happens
EDIT
If you start in 2nd with a MRVB(or just a manual VB)
you are not using the ORC so you dont have the issue
low gear is a issue on the 727.. thats why its advised
to get out of it ASAP.... never pedal a 727 in low..
shift first