[V8] Transmission not in 4th gear, flaky gear indicator ++

[Eyvind Spangen]

A friend of mine just bought a '92 V8. 
On the way home, the transmission started acting up. First, we discovered a leak - it smelt burnt ATF and smoked. Then 4th gear disappeared. The transmission just won't go into 4th, not even in manual mode. The car had a dipstick installed and we had to add just under two quarts to get back to the max line on the dipstick. Still no 4th gear. In addition, the gear indicator in the instrument cluster is really flaky. The letters are steady, but the square that illuminates the selected position will flash between all positions and sometimes not light up at all. If it does light up in "D", it still won't go into 4th. Except the missing 4th gear and the leak, the tranmission shifts just fine.

We'll take a closer look under the car tomorrow to find the leak. I'm thinking about the multi function switch on the left side of the transmission, either the switch itself or the connector or wiring. 

I have to add that it was raining somewhat heavy, and I guess water spray will make a bad connection even worse.. 

Any clues or tips? 

-- 
Regards, 
E. Spangen