'97 F150 Tranny Question

I just purchased a standard cab F150, 4.2 L V6 with a "defective auto. transmission that will have to be replaced" I rented a tow dolly and drove 35 mi to pick it up. Added 2 QTS ATF and drove it home. On the way, I ascended a fairly steep and long hill and the white smoke poured out the back of the truck. My '68 Chev Impala was following close behind and the windshield was covered with a fine film of ATF. When I got the truck home, the ATF was down 2 QTS again, the bottom of the trans. oil pan was soaked with atf and atf was dripping from around the bottom of the bell housing. The only time the smoke was visible was when climbing up the hill. The transmission shifted beautifully, did not slip and the button on the end of the shift lever obviously engaged and disengaged overdrive correctly. It would seem that the internal components are working correctly.

When I bought the truck I allowed for the cost of a rebuilt trans. from Ford. After driving it though, I wonder if the tranny needs to be replaced or if there might be a known problem like I described above. It almost seems like atf was pouring out somewhere and landing on a hot exhaust component creating the cloud of Impala enveloping smoke. It would be great to not have to buy another transmission but I will if necessary.

Any suggestions on where to look?

Thanks a bunch in advance,

Loren

sounds like the converter seal is leaking or a pump gasket.try cleaning of the oil and trace down exactly where it is coming from. if it is not slipping i dont think you have anything to worry about,just yet