i have a 700r4 transmission and everytime that i put the transmission into gear ( reverse or drive) it drops the engine rpm by about 500. i have to have my idle set at 1200 to compensate for this. also when i put it in gear the car jerks back. one of my friends said its a torque converter is that true?

 

What are you using to measure engine speed?

 

my stock tachometer

 

Is it makeing nose when u drive

 

no it runs perfect besides that issue. no noises, shifts perfect.

 

Which is probably reading high like most of them do at this age. Check with a test instrument.

 

ok but why does it jerk into gear?

 

doesnt sound like its in the trans,youll know if any thing goes wrong with trans,by checking the fluid,as long as your level is good and fluid isnt burnt or have metal flakes in it you should be fine,the jerk is from the over compesiation,setting the idle that high is like neutral droping it

 

It jerks into gear, cuz you're idling at 1200. The 500rpm drop is most likely a tuning issue, either timing or fuel.