Many of you have replied with your expertise on the matter of a blown tranny on an 88 auto. Or at least those kind of symptoms. 

Now here is a new development. I wanted to check to see if I could tell if ATF was mixing with the differential so I unscrewed the drain plug and oil literally came gushing out. When I closed it after filling a couple weeks ago,it was a trickle which I believe means it was filled with close to the 1.3 quarts that is recommended. 

Now, I also changed out the engine oil (it's an ej22 Subaru) and filled that up right. Well, the engine oil is half gone and I believe that's what was in the differential section. No visible leaks anywhere. 

Hard to tell if ATF was mixed in based on the Amberness of synthetic engine oil and the purple color of the diff oil. Plus, it's quite surprising when oil comes flying at your face while under the van. 

I don't really know what this could mean other than probably a good deal of money to fix it. 

Any ideas on the matter?

Mike