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'91 245 Auto Trans AW 71? Transmission issues HELP 200

Took my wife's '91 245 for an errand this AM and the trans felt funny. There is no tach in this 240 so I have to go by sound but it appeared to NOT be going into O/D. The O/D switch on the shifter stalk did work and the yellow arrow on the dash illuminated and turned off but I could not sense any differential in engine speed. Normally in this car I can hear when the trnas shifts into O/D at around 35 - 40 mph. Nothing like that this morning. I also then heard a sligt thud when taking off from a stop. Then later attempting to get up to speed the trans just "slipped" and did not convert to accelerate as I gave more gas. The thud got louder at the next start from stop. I was about 20 miles from home so I got off the highway and took back roads limiting speed to 35-40. Same symtoms.

I go home and parked on level and kept it running in park and moved the gears up and down to reverse, 2/1 etc. several times and checked the trans fluid.
Much to my surprise the fluid was not hot even after driving for over 30 minutes. The fluid was red and clean as I flushed it our with 12 qts. about 12K past. The reading on the 90F side was well above the max. I recall that I had thought it was low about 2 months past when my wife took it for a 500mile trip and I had added some (a few onces) of trans fluid.

I had my wife listen for the O/D solinoid click and she said she heard it when I depressed the shifer O/D button.

Should the extra fluid above the max level cause the slipage and thud on first to second gear shift?

Do I have a shot trans? or are these symtoms caused by overfill?

1/ Should I drain some fluid and then re test drive

or

2/ Just reflush with new trans fluid and check the level to the correct pt.

Thanks in advance






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