1997 dakota 4x4 auto trans. The tranny has been shifting hard and it has air bubbles in the fluid. Anyone have any insight to this problem. Any info would be much apprieciated.

 

Improper fluid level can cause this. Low fluid allow air to be sucked into the pump resulting in the bubbles. Overserviced could cause the fluid to foam and result in bubbles. I assume either case would result in poor shifting. Check it cold when there shouldn't be any bubbles. I think the level is usually towards the bottom of the range when cold but don't quote me on that.