Hey all, nice site you got here
I bought my first vehicle recently when i turned sixteen. It's a 1996 Blazer LT with a 4.3L V6 and a 4x4 automatic. The engine starts up and runs very well, but when i bought it, they told me something was wrong with the tranny. So we towed it home, and got tabs, etc. Today i took it out on the road for the first time, since it
does move. When i took it out, the first thing i noticed was that it will not shift out of first gear. Shifting into D/2/1 does not do anything, it won't hit second gear. Reverse
does work. Once i realized this (~1/2 mile down the road) i turned around and headed back home. Most of the way home, i was going up an incline at around 20MPH (~3k RPMs in first gear) and the whole tranny just slipped out and disengaged. It was like it went into neutral. I put her in park, waited for maybe 20 seconds, back into drive, and it took off again, still not leaving first gear. I got into my driveway, and was going to pull into the garage to take a better look, when it does it again, except this time it has a little pull, but not enough to make it up the driveway. At this point, i just park it at the bottom of the driveway and get out to notice there's smoke coming out from under the Blazer. Needless to say, i put her in neutral and we pull it up into the garage with my dad's 2500HD (6.0L V8 oughtta do it

). Once we get it in the garage, we check the tranny fluid. It's a little over full actually, so there's plenty, but it smells burnt.
Am i correct in thinking i'm going to need a whole new tranny? I saw in another thread that it could be the valve body. Can you change that without replacing the entire tranny? Is this even a possible cause?
Help will be much appreciated! (rep for helpful answers)