First of all I want to credit this guy: http://www.last-outpost.com/~malakai/lego/ His 3-speed automatic gearbox is fantastic. The use of 2 coupled diffs gives 3 different speeds. All I did was change the package and add a little something of my own. Now how it works: The 2 differentials are the most important components. AS can be seen in SAG3_int001.png. Green is the low-gear, pink the high-gear. ( the middle pink 16z gear is a clutch gear ) Blue is the input clockwise. Red the output clockwise. Stopping green from rotating gives you high-speed. Stopping pink from rotating gives you low-speed. Stopping nothing from rotating give you something in between. The yellow components in SAG3_int001.png are for changing speed. The selector. In the front there's a worm-gear driving a clutch-gear. In the back a standard differential. The gearbox will always try to select high-gear. Low-gear is stopped. But if the force coming from the rear differential is greater than the clutch-gear can handle, the gearbox will first release the low-gear. If this is not enough to transmit power, the selector will continue to rotate until the high-gears are stopped. I think this about sums it up. I guess you have to build it to see for yourself.