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That's a good question, I know mine needs to be done too as it is very dirty. I found this article that explains how to do it for BMWs which use the same ZF system that rover uses. Make sure you use Dexron III transmission fluid in it and NOTHING else!
 

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rrtoadhall said:
Disconnect return hose to power steering fluid tank. cap bottom of tank. have a buddie start engine and slowly turn wheel from left to right while you keep tank full. When fluid runs clean reinstall return line, fill and turn steering from left to right a couple times to burp any air from system. Top off tank.
That is what I was thinking about doing but wasn't sure, I'm glad I know it works ahead of time :D .

Hey, thanks for the input about the Dexron III. Though getting my hands on straight-forward Dexron IIIs might be difficult as most auto shops around here has Dexron IV or, some mixture that's for extended mile vehicles and/or domestic vehicles w/ specs requiring Dexron IIIs or better-But doesn't exactly say that it's Dexron IIIs.
I know, its odd but the service manual calls for it so I guess we should follow it. I would try looking for bottles that say "mercon III" on them. I know some of owners on the forum that have used dexron Iv (which replaced and "can be used" for dexron III but that is LIES) get grinding noises in the transmission and odd shifting. I was one of those owners, the grinding noise is faint and I doubt it is doing any harm, but I wanted the noise gone lol. Mine was replaced with a vavoline mercon III ATF. And my transmission loves it! I will be using the same stuff when I flush the power steering.
 
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