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I've driven the 1996 model - it still had the performance button. I would leave it on the Economy setting if you're after fuel efficiency, a Saturn tech at the time told me that Performance moves the shift points higher and advances the spark timing. It was my dad's car, I don't think the Perf/Econ switch was ever switched to perf the whole time he owned it except when I drove it, and it had no problems merging on to the interstate in Econ mode either.
Yes, the TC locks down on it - every GM I've ever had the TC has locked, at about 45 MPH. If your Saturn has a tach you should see it lock down, it's a 4 speed automatic and it will look like it shifts 5 times - the 5th shift is the TC locking.
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