Well, forget all other assumptions...it definitley was the radiator. I drained the tranny and the torque converter and pulled the cooler lines from the transmission. I then pressure tested the radiator (with a make shift garden hose apparatus) only to see coolant spraying everywhere out of the bottom of the radiator. What a mess! I guess I'll see if my local indy can get me a new one tomorrow so I can install it right away. This was my daily driver and I need to have it running in good order.

**note: I did feel around for that vent cap on the top rear of the transmission to get an idea of what I was dealing with. After feeling it I definiteley agree with Pawosd...the tranny would have to be submerged in water for it to take on water from there...and rightfully so.

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1983 300SD White with Grey interior