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I've got 3.0 Si with auto trans and it needs to have the shift lever moved to the left to enter manual mode. It will then hold in gear until stoping but also has throttle kick-down and upshift at redline. It is really just a gear holding feature for cornering and with torque converter locked feels like a manual gearbox. The sport button changes the shift points but is still full auto like in "D" unless the lever is moved over. Paddles are just for convenience and work secondary to the selected mode.
Hope this helps and make some sense!
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