I also notice its leaking fluid around the bell housing area. could it beits leaking out the fluid and causing the problem.

 

Certainly won't help. Clean everything off in that area, and verify where the leak is coming from. No point in dropping the trans if you don't really have to.... If it IS coming out of the bellhousing, time for a front pump/torque converter seal. Trans MUST be removed to change it.

 

+1 i agree, however, thats assuming it's leaking tranny fluid. Ralpho, are you sure it's leaking tranny fluid? These trucks are NOTORIOUS for having bad freeze plugs and leaking coolant along the inspection plate. Just throwing that out there.

 

I'm confused I let it sit overnight and checked the fluid and it was low so I put some in and it runs fine. It was leaking when it was on a slant now its level its not leaking.

 

Bad gasket. Loose bolts. Or a combination of the two.

 

If you can, clean up the trans the best you can. Let it dry then park on a hill to see where the leaks coming from. But to tell you the truth, I think HeyYou hit the nail right on the head.

 

If the tranny is leaking while driving would it cause the tranny code to go on. Or if the fluid got low would it cause the code.

 

My '97 Ram was experiencing the exact same thing you are describing. Mine would work perfect when I first started it up cold, but as it warmed up it got worse and wouldn't shift.
If I drove it too long it would start whining like it was getting really tight. I would have to shift it manually, or I could shift to neutral and back to drive and it would shift, mainly 1st and 2nd gears was effected. I replaced the governor pressure switch and sensor from the dealership, cost me $250 and it didn't change a thing. I also found the check valve coming from the radiator was stuck so make sure you check that, it's about a foot from the radiator, just need to unscrew the connection and poke it with something to see if it's free. I removed mine completely. I ended up taking mine in for rebuild, found out the pump was shot and the trans wasn't cooling or lubing like it should. Well now $1800 later it works perfect and I have a 2 year warranty. My truck has 105,000 miles on it and I have changed the oil every 30,000 miles. Shop said the transmission was pretty shot all the way thru, maybe that's a story, not sure. He said 2nd gear band was really thin and all the clutch plates were really thin too, also the gears in the pump were shot.

 

It hasnt done anything since I came back from the trip. I added a little fluid it hasnt leaked or had trouble. I dont know weather to reset the codes and drive it around town and see what happens. I dont get it

 

the nature of that thing failing is as you describe- i had one give me constant grief for about a week or so- and i couldn't get to it.. about the time I was ready to finally address it, it started working just fine... It finally stopped working for good some time later... The point of me saying this is that it just sounded the two minute warning on you.. It will fail for good soon.. You can start putting change in a jar labeled "that damn tranny solenoid" tomorrow, and it won't hurt so bad when it finally gives up the ghost.