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Automatic transmission problems 850 1994

A customer of mine has a '94 850. His auto transmission is shifting normal at first, but at the first stoplight, when accelerating, it feels as if it is in 3rd gear. It has no power, and once up to speed, it will not downshift. If the car is shut off and restarted, the trans will go through the same problems again. The dash has an arrow (orange) that is flashing when the problems start. The fluid is burnt bad. He should have changed it a long time ago. This car has 85,000 miles, and is the 5-cylinder non-turbo model. Our computer at work tells me very little information, short of replacing the trans. Any advice would be welcome.Thanks






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