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Hmm.. when my S3 was that new, I do remember hitting a few 'false neutrals'. Furthermore, the shifting was a bit notchy. The tranny finally 'broke in' at around 3000 miles or so and now shifts very positively. I never had any problems not being able to shift up though. Could it be that the lever is adjusted up too high, making it necessary to use excessive foot motion? Or is it simply stuck and won't go any further? If its the latter - get it to the dealer and let them make it right.
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