Transmission Problems

[phillter]

(warning: long post)
I have owned a 1997 Ford Escort for two years; purchased it w/55K miles on it and it's run really well.
I had it serviced at my local Ford dealership and one of the issues that came up was this:
The cables leading to the transmission are corroding and transmission fluid has been leaking, and the cables need to be replaced. I'd noticed some erratic behavior w/the transmission so I was happy to have an explanation.
I don't know if I'll want to replace the transmission in this car if it needs to be replaced. I would hate to spend $600 to have the cabling work done and then find that the transmission needs to be replaced (which I won't do).
The dealership has told me that they can't even look at the transmission until the cabling work is done. Is this true? Also, just recently (within the past few days), the transmission does not seem to go past 3rd gear, but I don't want to push it.
The car is running quite well, but it's not going past third gear-does that mean the transmission is done? Could it just be a low fluid issue?
This is my first post, I was happy to find this site as I know NOTHING about cars.
Thanks in advance for any help, and sorry about the long post.
Phillip

[AzTumbleweed]

When you say 'cabling' do you mean electrical cables or control cables (like a throttle cable)? First make sure you'r transmission is full. Drive the car until it's good and warmed up and pull the transmission dipstick out with the engine running and transmission in neutral. Make sure it's full. If it's full then I would take it to an independent shop for a second opinion. Ford will take you for everything they can.

[Arnoldtheskier]

Yes as pointed out..check the fluid first.I am GUESSING that the "cables" that you are referring to(corroded)/and the transmission is leaking are the transmission cooling lines. These are too expensive to have the dealer replace.Try a transmission or rad shop or a large auto repair chain.