your shop manual makes no mention to using friciton modifier? does it also say to use atf4? if so i find that really interesting and would like to know the reasoning behind it if you wouldnt mind asking your dealer or shop. i have my own opionions on it.

 

Old School......is your clutch catching very low to the floor? I see some BOV set ups where the metal tube that connects to the throttle body pushes against the slave cylinder. When it pushes the cylinder back twords the tranny, it shortens how far it pushes the clutch fork. Check that out, and definitly change the fluid.

 

By the sounds of things, you definiteley have an internal trans issue. Whatever it is was exaggerated by not changing the fluid. (not to beat you up about it) I am glad the dealer is willing to warranty it for you. I was less than enamored with the quality and feel of my shifts also and at one year and about 12,000 miles, I changed the fluid. I went with a full synthetic called Redline (c 4 or c+4 or c 4+ or whatever the heck they call it) It was the only synthetic I saw at the time that advertised to meet or exceed the Chrysler atf+4 specs. It was about 9.50 a quart. I did not use and to this day have not added any FM. My shift quality improved dramatically overnight and if anything, has only gotten better. I have about 18,000 on it now.
I HIGHLY, HIGHLY recommend the Redline brand.
BTW, at 12k the fluid I drained out was full of metal in the form of metallic gray liquid in the would be red trans oil.