Auto Tranny grinds and runs in gear for just 1 mile.

[black_eclipse95]

My Wife has a 95 TSi AWD w/ATX. When I put it into any gear it makes a griding noise. When it is in park, I have no noise. When I drive it, it will go about 1 mile before it slips and I pull over. I let it sit for about 5 minutes and drove it another mile. Did that for about 4 mile til i made it home last night. When it first happened, I checked the fluid and the level was find but it smelt burnt. Has anyone had this kind of problem?

 

[black_eclipse95]

It did not have any thing in the fluid yesterday when I drained it. I ran it thru a filter just to check when I was draining it. I changed the filter and the fluid early this morning and have put right at 100 miles on it already today. It is running fine. It never slipped once. No grinding noise.