I topped it off with about 3/4 of a quart and drove it around the neighborhood; seems ok. I'm unsure if the fluid smelled burned, I mean it has a smell to it, but it just smells like used trans fluid to me. �� I guess time will tell at this point.

 

The color is what I was talking about. It should be red almost clear. That looks more like motor oil to me.

 

That's the color of it what I poured straight out of the bottle, that I just bought. It was red.

 

Automatic transmission fluid is red when new. In service - over time - it will turn amber/brown. This is not an indication that the fluid is bad.


If one would remove the dipstick and let the fluid on it drip on a white paper towel, or wipe it on the towel, and it appears almost black, the fluid is wasted and needs to be changed.


Burnt fluid has a distinct smell, not to be confused with the smell of new/normal in service hydraulic fluid.


When in doubt, replace the fluid by the drain and refill method (about 3-4 quarts at a time).

 

I just recently found out (2 weeks ago) my transmission lines were leaking - got them fixed just today. During the 2 weeks between discovery and fix, my XJ wasn't going into park - again. I had to leave it in neutral with the parking brake on two or three times before I was able to add fluid and get the lines fixed.

 

Park position is mechanical. FSM calls for shift linkage adjustment or replace park pawl lock cam and spring. Sorry about the picture, but it gives you an idea of what the park pawl and spring is. Your issue is most likely the shift linkage