I have an '84 GL (automatic).  I started noticing that it wasn't shifting out of 2nd.  I decided to check the ATF and found the stick to be completely dry.  It took 2 3/4 quarts to bring it up to the MAX hole.  It seemed to drive better.  I took it out the next day and drove about 30 miles round trip and it was doing it again.  I checked the ATF again when I got home and it was down to half way between the MAX and MIN holes.  I checked underneath and could see about five different drops around the pan.  I ordered a new pan gasket and changed it and cleaned the screen.  It appears to be leaking from somewhere else.  Plus, it still won't go out of 2nd.  

How serious does this sound?  What must I look forward to?  Any help or ideas would be much appreciated.  Thanks. 

Rob
'84 GL  (190,000 miles)
'86 Subaru GL-10 (260,000 miles)

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