Use the Synthetic
No matter what oil you use I would go with the Synthetic. It will not eat anything up.
My Blazers and other cars I've had have used Synthetic oil for everything from the Tranny to power stearing and the diff's with no problems.
As for what Oil to put in the 203 go with what the book says. I found it weird to add ATF to my old 208. And I think there are two seals so if your vents are some what clean you should be ok.
Cethern
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