Your tranny blew because the seal between the diff and the tranny failed.
Unfortunately, it's very common after 25+ years. You need a rebuild or a
rebuilt unit from a reputable vendor. Good used ones can be found, but I
would not install one without resealing it. :-(

Stuart

-----Original Message-----
From: Vanagon Mailing List [mailto:vanagon@gerry.vanagon.com] On Behalf Of
Michael
Sent: Wednesday, March 30, 2016 5:18 PM
To: vanagon@GERRY.VANAGON.COM
Subject: Sad and depressed

Sooooo,

Last December the 88 auto blew the diff gasket. Checked atf. Nothing.

This winter replaced engine oil, diff oil and gasket and coolant as well as
threw in some atf.

Just moved the van. It revs really high. Like 3500 high before it moves. It
feels like it's stuck in a high gear.  Usually it clunks a little when it
goes in gear. No clunking at all through the gears.

And smoke. And the oil level which was full, is now not after runnin it for
like ten minutes. No drips.

Damnitt.

Mike