Sorry about the extreamly late reply but I thought readers might like to know the outcome if they see the problem. It turned out it was the head gasket leaking which dripped down the engine and then dripped off right at the transmission. It was about $1000 to replace. Every since then its been perfect. I cant say I liked dropping $1000 after just buying it 3 months earlier but...I should have done a little more checking in that area. Thanks for the help on this forum though. I love this place!

-Brad

__________________
1986 190E 186K (For Sale)
(Maroon, Tan leather)
1996 C280 Sport 208K
(Brilliant Silver, Black Leather)
2002 CLK430 Sport 45K
(Brilliant Silver, Gray Leather , Birdseye Maple)