es300/Windom Transmission Prob

My 92 Windom 3.0 has recently developed a problem on startup when you put it into drive, it does not engage for a few seconds. Same for reverse. Rev it lightly and it gradually engages. Feels kind of like it is slipping the clutch. Just lately it is also happening at intersections. I pull up, it seems to drop into nuetral rather than staying in gear. Then when i try to accelerate away the engine just revs and then 'clunk'! it engages again. Whats the issue here? It has run so smoothly till this.

Welcome to the AF!

Have you changed the transmission fluid lately? Try flushing the transmission fluid with fresh and see if that solves your problem. Mechanisms with really tight tolerances begin to stick when the lubricant is not doing it's job as well as it used to.