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240 Automatic Transmssion Overfill Effects? 200

Hello, there is widespread reference to overfilling an automatic transmission but can someone tell me what is the true outcome if it happens? Here is my recent experience. I picked up a nice clean '87 240 but God only knows why I did NOT check the tranny fluid! It was a good deal in all respects even IF the tranny is kaput. It shifts bumpy but firm and is excellent if you drive it a skosh agressively, the bumpy shifts mask out and no other symptoms come up..it's unchanged after putting about 1,500 on it. OK, the real issue is I finally checked the dipstick and it was DRY bone DRY. I added a quart and still dry.. after the second quart it showed overfull but I was in no spot to drain anything out at Autozne parking lot. Drove it about 5 miles, stopped..leaking BADLY like about 8x11 inch square of fluid AND drips trail leading to parking spot.. at this point I figured I'll be swapping this tranny out. But at the next stop..no leak to speak of..maybe a dime size drip, unbelievable in my mind. OK, after couple days check fluid and does show MIN. level... I added some and idled it.. it did not come up much..added almost a full quart.. back to overfull on stick.... with past experience in mind I drove it again about 3 miles and stopped... LEAKING bad again!! but back home, dropped away to nil and oil looked like it came from almost everywhere... but not from bell housing, more like the pan overall...weird cannot pinpoint an area..not yet.. I wiped it all down and will look again today, my daughter has it so I won't see it for a day or so.. It drives great but my question then comes down to this... Is filling too fast causing a fake overfull dipstick reading and also a temporary gushing leak?? If so, too good to be true.. but overall what is actual end result of overfilling a tranny, does it ruin them totally or what??






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