ihave a 2000 volvo S80 T6..

what i thought was an oil leaked has actually turned into a TRANSMISSION leak. i took my car to the dealership 2months ago and told them i was noting an oil leak on my driveway. well after a $90 diagnostic they said "no oil leak"... well the damm thing continues to leak so i put a towel underneath the car and its RED/purple in color which i'm assuming is transmission fluid... am i correct??? must because the damm transmission fluid is low when i checked while it was running!

i just went back outside to look again.. i checked the transmission (ATF) dipstick and there was lots of fluid apparently all the way UPTO the HOT marker on the dipstick (the car had been sitting for about 3hours) .... suddenly i thought holy$hit it's leaking because its overfilled... so i drove the car about 5mins and checked the dipstick and now it is nearly empty (well below the COLD on the dipstick) ...

the marking on the dipstick are COLD near the bottom of the stick and HOT higer up... that's correct isn't it?? ... so why am i getting these funny readings???? help???

i can not get underneath the car to look exact at the source, does anyone have a clue... is it a gasket or bolt or is the darn thing dying.. it only has 87k miles.