W124 Transmission Sporadic reverse.
 

My 1989 update W124 260e has developed an intermittent fault in the transmission.

When cold car will reverse no problems. When hot car starts in reverse but suddenly stops as if handbrake is on.

All forward speeds no problem. Changes smoothly.

Have changed filter and fluid. On inspection of the filter it was full of "sludge" - No apparent solid pieces of metal

Any ideas? Up for rebuild? Clutches? easy or difficult repair? can DYI or shop job $$$?

heres some fotos

http://farm4.static.flickr.com/3452/...62884da8_o.jpg

http://farm4.static.flickr.com/3652/...6eb75ec5_o.jpg

http://farm4.static.flickr.com/3544/...0c72c5ea_o.jpg

Picture of transmission

http://farm4.static.flickr.com/3655/...c30b67e6_o.jpg

Answered my own question. Turns out band 3 is loose and there is a problem with the spring and washer on the reverse piston. Solution is to remove transmission and replace faulty reverse piston and spring assembly.

Low K replacement transmission is one third the price of rebuild.