Thanks again for your input, guys.
Martin, the link to the troubleshooting/repair article is great.
However, due to lack of service by the previous owner and me not attending to it quicker, the transmission is in it's final resting place. In it's place is an 80k used unit that has a new filter and is filled with new MB fluid. It also left a large dent in my wallet. I hope my experience will convince others to not put off servicing their 722.508 transmissions.
Ken

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Some days are like licking ice cream from a spoon, today is more like trying to staple jello to a brick!
1990 300 SEL