My spin is a lot cheaper $3.50 torque converter seal, does exactly
what you say, makes smoke billow out.  Usually it is the other
way, leak when cold, but I could see hot as well.  It is a good
Saturdays fix.  The seals get beat as the bush in the converter
wears and the converter wobbles, but that isn't an issue under
100k miles or so.  It may be throwing a little all the time and you
don't realize it, coats the edge of the bellhousing area with ATF, the
coolant hoses, etc, one unholy mess, gets spun up and out the vanes
on the converter they collect dust, a real PITA to get it all cleaned up
when you put the new seal in.

Seal from Bus Depot, RMMW, whoever.  RMMW had it cheapest
last I looked, order the seal for the Type 3 automatic, it is the same
seal but RMMW doesn't realize it.

Converters are hard to find now days, around here Advanced lists
a lifetime rebuilt for $99 but can never physically lay hands on one,
I've found no-one else either, but I don't think they go bad until 100+.

John
jander14@wvu.edu