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I just purchased an 02 X-Star with 330 hrs in June. Now it has 345 hrs and problems with the transmission. I took it to the mastercraft dealership in Memphis and gave them a go ahead to pull the transmission out, and they think they might need to send it off the Hearth (I believe) in order to get it rebuilt. They said that it is full of water, and that it is making some awful racketing noises (like something is getting ready to break) when you start to engage the throttle. They said they have never heard this problem before, so they are afraid to just change the seals because that would be 8 or 9 hours of work and still might not fix the problem.
Have any of you heard of this problem before?
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