2001 Durango 5.9L 4x4 Transmission slipping. . .65000 miles

I'm having a prob with my 01 durango. It has a 5.9 v8 and is 4wd. The problem is that the transmission seems to be slipping and it seems like the torque converter's not engaging at any time ever. barely give it gas, and rpms increase. Shouldn't do that if torque converter is engaging. After driving it fairly hard one day, I pulled the dipstick for the tranny, and steam was coming out of the tube. What could be wrong? The fluid looks red (the dealer I just purchased it from may have flushed it before) but doesn't seem to have the same consistency as my grandmother's 01 dakota (witht the 4.7 v8). Suggestions, anyone? I'm going to try and take it to a transmission shop tomorrow.

Fluid in that should be Mopar ATF+4 - not Dex, I'd try to find out who serviced the tranny and what they used.

UPDATE: Well, just got the vehicle back. It seems the torque converter had a slipping clutch. The replaced it and it runs much better now. It does shift funny every now and then, but better now. The shifts are also firmer now as well. Once it acted as if it had been put into neutral and rpms climbed rapidly. I let off gas and it shifted correctly afterwards. Torque converter seems to be doing its job now, though.