Failing transmission

Help! After driving for about 20 minutes in my 1991 525i /M50, the trans just gives out and the car gets all sluggish. The only way i can actually get out of a serious traffic situation is if I switch to manual mode and quickly shift down to 2nd gear and gradually up-shift and even that sometimes fails. Then I get the message: "transmission programme."
What do you think I should do? Do I need a new trans?!!!
Please no!!!!!
Thanks for your time!!!!

Your trans computer is picking up a fault code from the trans. www.bmwe34.net has a section on trans issues that suggest what to check before going the replacement road.

What is happening is the transmission is engaing 3rd gear, "limp mode," to protect the trans from further damage. You also have reverse. Your switch to manual mode increases the chance of damaging the unit!

What he said, you keep doing that and your going to end up spending about $3000 on a rebuild or new transmission.

I just bought my first BMW (1992, 525i) and it's doing the same thing. Can you tell me if you ever discovered the solution to your trany problems?