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88 240 original transmission slipping 200 1988

Hi all,
I've got an 88 240 wagon with 205k on it. A couple of weeks ago I noticed the transmission didn't want to go into gear, kinda spun, backed off, went into gear..
Well its an old car so I didn't initially do anything about. After a couple of days of this though I checked and found my fluid to be way low. Anyway, did a little inspection and found someone had spliced one of the fluid lines going to the tranny, I think its leaking, slowly.. anyway. I've filled the resevoir, but its still doin its thing.. Seems to get better as it warms up.. So my question is, am I tottaly fu.... or is there something I can do. Since I've had the car 30k or so I've never flushed or changed the filter, a little embarrassed to admit I didn't know there was one.. I've read that I might just be better putting in a good aw71? how hard is this?? any ideas??






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