Joe,
It looks like your trans cooler busted and tranny needs to be serviced. I hope i am wrong but if that fluid smells like coolant ...If this is the case geet rid of that crappy cooler and install a good aftermarket AT cooler like "supercooler"(i bought from Carparts.com).
Leon
85 Subwagen Westy

moonwoodfreeze wrote:

I have a 1986 vanagon gl. For a few months now, the automatic transmission has been acting a bit wierd: sticking, not shifting properly , etc. but once it gets past going it'll drive fine, just not so great stopping and starting. now , yesterday the van will hard ly drive forward, but in reverse fine. I checked the tranny fluid and it's brownish red and very watery. i'm planning on draining the fluid out and renewing it. can anybody shine a light on the situation at hand? Thanks,Joe