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Yes, you can do this. I did it earlier this year. As Atok said, call Bill Boudreau at ZFDoc. He sells a plug from ZF that fits that hole (there is no GM part number for this plug). I originally tightened it to the CAGS solenoid torque spec and had a very small leak from it. I then added some teflon thread sealer tape and tightened it a little more, and it's been fine since. I also tried an oil pan drain plug of of the same thread size (I've forgotten the thread dimensions, but it's metric), but felt more comfortable with something at least considered by ZF. The threads of the ZF plug are much tighter in the trans case threads than were those of the oil pan plug (the ZF plug also does not have the plastic washer like the oil pan plug). The other nice thing about having the CAGS solenoid out of there is there's a lot more room to deal with the clutch slave cylinder if you ever have to. One more thing, before you put the plug in, you also have to pull out the pin and spring inside the CAGS hole in the trans (just get some needle-nose pliers and pull them out, there's no danger of dropping them inside the trans). Bill can explain that too, he's a great guy to deal with.