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Automatic Transmission Noise 200 1988

My 1988 245DL with 130,000 miles sat for several months during the winter with a broken timing belt as I waited for warmer weather. Now that we are up and running, the automatic transmission is making a wherring noise in first gear. The noise increases with speed until tranny shifts into second gear. In second gear the noise is barely audible. There is no noise when parked in neutral.
I checked the fluid level (warm transmission level) and the fluid is a little above the max level. I had the same noise a couple of years ago but it went away after about a day. Any ideas what this could be and any fixes?
Also, whenever I initially pull the tranny's dipstick, the stick is dry. But I have fluid on the stick after re-inserting it. Is this typical?
Thanks!
Mark






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