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Followup note:
After driving the car for several thousand more miles, the hard downshift from 3rd to 2nd/1st appears to have softened significantly. It no longer exists in sport mode at all. Prior to the fix, I was considering replacement the solenoids (about $750) but that appears to be no longer necessary. Hooray for a cheap fix.
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10/2005 330i. Yep, the one with the aluminum bolts.
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