E420 Tranny Problem

[knarf]

Greetings Forum Members,

I recently purchased a 1997 E420.
Before purchase I reviewed the posts regarding the major atributes and weeknesses of the car.
This past Wednesday I drove my car from Boston, MA to the White Mountains of NH for a couple day get away.
Thursday I noticed a faint winning sound comming from where I initually thought was the engine compartment.
The sound would begin at about 1500 RPM and increase in pitch with the increase of engine rpm in park and while driving.
Eventually I traced the sound's source to somewhere under the car near the engine.
Friday afternoon after a drive along the Kangamangus Hwy ending in Conway, NH the forward transmission gears began shifting irregularly.
I drove into the first gas station I came to and put the car in park to assess the situation.
I reved the engine and the rattling whine seemed louder.
I put the shift lever into drive to move the car forward a bit and NOTHING. THE CAR HAD LOST ALL FORWARD AND REVERSE GEARS.
I turned off the car and called AAA. While waiting for the tow company I started the car and I had forward and reverse back again. In fact I drove the car onto the flat bed tow truck.
Not taking any chances the car was towed back to Boston.
Has anyone had a simular experience or might know what the problem might be? Would low tranny fluid be a possible cause for the rattling whining sound the transmission is making?
Assistance with this problem would be very appreciated.

Knarf