Our 1983 SD's transmission seems to be degrading as of late, when we purchased the car last august the entire engine/tranny/everything was bone dry, no leaks at all, anywhere, truly amazing. It stayed that way up until recent, when the tranny began to act pretty slippery, it slides its way between gears, and I inspected it underneath and there was tranny fluid ALL over the rear of the pan, and the upper sides of the tranny itself! (Now a 2 foot diameter circle of fluid on driveway from it!!) Its literally dripping back there now! What failed? I was guessing perhaps the rear-shaft seal? But that still would not explain why the transmission slips so much, I adjusted the modulator to be firmer, and it made an ever so slight difference but not much. Also, when for instance, slowing down to go into a turn around 15-20mph then going back on the throttle, it revs way up (3-4k rpm) right away as if it lost "grip" inside or something, this rev is accompanied by a loud whistle and squeal from the tranny, it will only go from that if you completely let off and then reapply the throttle Whats wrong?! This transmission was running so smooth and good up till just recently....now its leaking like a faucet and has all these probs! It lost a quart of fluid within the past few days alone, and also the fluid smells burnt and is a much darker red than the fluid drawn from my 82 for a comparison. Also it takes a long time to engage Drive, if that helps too, I'd say sometimes 4-5 seconds....if you don't wait it will just rev up and not engage till you let off the pedal. Something bad must have taken place in there, during the past 7 months we never saw a single drip nor did we ever have to add virtually any fluid. Is this tranny on its death bed? If you drive very gently or like you stole it it does ok, its the normal driving where it slips bad and acts up. Help???

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