I also have a 2004 196 LE. The capacity is 2 quarts. Dextron 4 or equivalent is fine. You should warm up the boat then check transmission level. Do not overfill (most important). I drain old fluid out using a drill pump into an empty 64 ounce gator aid bottle. Easy job, it takes 15 minutes total. I leave theengine running to check transmission level.