Slipping Transmission

[cai]

I have a 1988 735i with the E32 engine and automatic transmission. Tonight the car would thump quite markedly when changing from 1st to 2nd gear. While stuck in stop and go traffic the car would not advance while in D - drive. It would go OK if I put it in position 3 of the gear shift. It also started smoking a lot, but there was no visible leak when I parked the car. I had to drive about 20 miles in 3 at about 60 mph and did not have any problems. The D position still does not work, the tachometer revolutions goes up but the car does not advance.

I have trouble reading the level on the transmission dip stick. It is difficult to see the liquid on the stick. However when I took it to the dealer sometime ago, he said that the level was OK. Does anyone know of a trick to read this level?

Any help will be appreciated.

Thank you.

[cai]

I just checked the transmission fluid level and it seems to be full to the brim. I do not know from where the smoke is coming; the oil does not seem to be leaking much and the smell is not of burning oil. The steering fluid holding cylinder is foamy, so it could conceivably have a leak somewhere, but the level seems to be holding.

THE MAIN QUESTION IS "THE TRANSMISSION IS SLIPPING" and I do not know why.

Any suggestions are appreciated.

Thank you.

[Torque]

the tranny is about to die...unfortunatelly.

the same thing happened to us when we had a POS taurus (thank god we only had it for a month or so). you would be going down the freeway doing 65 and then bam. sounds like something hit you and then you just hear the engine rev up high as hell while your speed drops to like 30 and then it kicks back in with the same sound. we had the tranny fluid, filter everything replaced... and ended up selling it for 1000... paid 4200.

try to find a new tranny... although that will be expensive

[Torque]

also before you do anything... have your gear selector checked out. because it might just be going into neutral instead of drive for some reason

ok, im going to sleep now

[cai]

Torque O:

I checked to see if the gear lever selector was in neutral, but that was not the case. Do you mean to say that this may happen inside the transmission without any outside indication. That is the selector is in "D", but the transmission has slipped to "N" inside without the selector moving?

Thank you.