Dear Chris,
Good p.m. and may this find you well. The water in the ATF, which got into the tranny, likely dissolved some of the glue, that holds the clutch material to the backing plate. Fibers from the clutch packs have gotten loose. These likely have clogged the filter and the narrow passageways in the valve bodies.
Don't try to salvage/re-build this transmission. Go to a salvage yard, which has 940s. If at all possible, ask the yard operator for leave to go from car-to-car, either escorted or alone.
Given leave to inspect the cars, here's what you should do. Pull the transmission dip-stick. If the fluid is rosy-red, oily, and clear, that's good. Make a note of the car's mileage (or Km traveled).
Go on to the next car. If you find brown/black fluid, go no further with that car: the fluid is dirty and the tranny has been compromised. If you seen orangey fluid - rather than a clear rosy-red - keep moving: the tranny has overheated, and the fluid has been cooked. If you see fluid that seems watery - rather than oily - it, too, has been over-heated. If you see milky fluid, run from that car: there's water in the ATF!
Once you find the lowest-miles car with rosy-red fluid, ask to have that tranny removed. Any transmission shop can install it. It should be flushed with good quality ATF, and run for 1,500 Km. I'd then have it flushed again, with Mobil 1 Synthetic ATF. Then, you should have many happy KM ahead of you.
The advice given as to replacing the tranny seals - and the engine rear main seal - is sound. Doing these things is not costly, when the tranny has had to be be removed.
Hope this helps.
Yours faithfully,
spook
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