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We have messed with this thing so much, only conclusion is that the pucks are wore out. Cause its like it isn't expanding enough to grab that second gear to shift. An we did screw them in tight an back off 4 turns each for factor setting. So I'm hoping I just need new pucksThe LST2 has an adjustable 2 speed that is a pain to get set right. Check the manual for it and pull it apart then reset the two speed to what the book says. It's difficult to tell when you have the screws all the way in with the springs fully compressed since your screwing into composite shoes and it's tough to twist the screw anyway. Best thing to do is to screw each screw a turn, then pull the shoes apart by hand until you can't pull them apart, then adjust back out from there.
Also, could just be your tune is too far off not allowing 2nd gear to kick in. If you hold the truck in the air and ease up on the throttle, does it shift then?
Personally, the LST 2 speed was one of the reasons I got rid of mine. Over time, the shoes wear down and the "bearings/pucks" that ride on the flat spot of the two speed hub roll off the flat spot then it gets stuck in second gear. About once a gallon, I had to fuss with the two speed by putting paper or something under the puck so it would stick out a bit more and not go over the flat spot.
You can see here where the little pucks would hop the flat spot and shined up the rounded part of the hub:
You can see the little pucks here:
If you don't have them, look into get the RC Raven triple rate springs. They worked great on mine.