I'm almost certain it does. I remember reading it on the old site, and also one guy who always drove around town in 3 and put it in D only on the highway. He did this because he couldn't stand the noise. Your gas mileage may suffer from having it in 3 but that would also depend upon what speeds you're going. I don't drive that way, but I do know that if I'm coasting at 10-30 miles an hour and there's something for it to echo off of, I can hear the noise. Give it a little gas, it stops. Shift into neutral, it stops. Shift down to 3rd, it stops. It also stops it self almost as soon as you come to a stop, I think when it downshifts into lowest gear, or disengages gear. I don't know all the specifics of an auto trans to know exactly how they work, nor do I know all the specifics on how or when the DOD works, but it's my understanding that the noise I hear (and the one I think you hear) is caused by the DOD being active. Sometimes I wonder how much the DOD affects gas mileage. I usually get around 16mpg stop and go daily driving. Yesterday I pulled a 240 mile round trip highway driving to Baltimore and did 23mpg. And these figures are calculated and not the ones displayed on the DIC. The ones on the DIC don't have any rhyme or reason IMO, what's displayed always seem a tad bit lower then what I actually got. I know there's a lot of variables there. Maybe someone else can chime in if they think the noise you're hearing is what I'm saying.