Reverse is shot on my 89 240 DL

[sbh9924]

Hi,

My 89 (140K) 240 DL has a fading transmission. It has reverse first thing in the morning, but if you drive the car around, there's no more reverse. My wife took it on the highway and the same thing happened to drive--but it drives around the neighborhood just fine.

I took it to the garage because it was overheating too, and replaced the radiator, and now it doesn't overheat. The coolant had turned rust-colored, which the mechanic said was from the transmission fluid draining into it, but since I fixed it (1 month ago), the transmission still ain't right. Today I checked the levels but there seems to be lots of (rust colored) transmission fluid in it.

Anyone got any suggestions?

Thanks
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