I just bought a Jeep and it has brown tranny fluid, so I did a drain and refill with new fluid and some lucas transmission additive and it still doesn't want to move in drive, or reverse. There is no grinding at all, but there is a little clunking coming from the torque converter/flywheel area while in neutral. I've heard that some people have had loose bolts on their torque converter or flywheel. Could this be the problem?

Also, I know it's not the transfer case because when it is in park, it doesn't move illustrating that there is a positive link from the transmission to the transfer case.

 

Transmission bands have probably burned up.

Probably time for a rebuild.

 

Could I replace the bands from the oil pan? I have been researching clogged tranny filters and it sounds exactly like what happened to me. It was driving fine, no slipping, and then just won't move while in drive.

 

Burnt fluid is a sign of burnt clutches and bands, time for a rebuild.