My engine just started giving me problems, it revs before going into the next gear almost as if it is in neutral for 2 seconds then it kicks in. When it does shift to the next gear there is no power, I can go about 20mph tops. I just spoke with a friend who said when his tranny was going he had all this oily/greasy substance that sprayed all over the rear end of his vehicle, presumably transmission fluid, and I am experiencing the same thing.

What could it be, what are my options. I'm not a do-it-youself mechanic but I often purchase the parts I need online. There is a local garage that specializes in Volvos so I was thinking of taking it there to have it diagnosed, but I wanted to get a feeling about what it might be before I shell out $$$ for a new tranny when all I needed was a $5 seal/gasket.

Thanks,
Sam (Portland, ME)