There is no quick answer to your question. Automatic transmission are pretty simple, especially that one. The problem is that too many people work on their own car that probably should not be.
I would suggest that you study how automatic transmissions work then study how that transmission works. Once you grasp all the ins and outs on the principles how it works, then you can disassemble this transmission to find out what the cause is.
Sorry, there really is not any simple answer to your question. I'm certain, without a doubt, the problem is inside the transmission and you'll have to take it apart to find the root cause. The second problem you will have is finding parts. You could also find a used one, that's what most people do. Sadly, you'll never know what went wrong and you never know what you will get with a 30 year old used transmission.
I would suggest that you study how automatic transmissions work then study how that transmission works. Once you grasp all the ins and outs on the principles how it works, then you can disassemble this transmission to find out what the cause is.
Sorry, there really is not any simple answer to your question. I'm certain, without a doubt, the problem is inside the transmission and you'll have to take it apart to find the root cause. The second problem you will have is finding parts. You could also find a used one, that's what most people do. Sadly, you'll never know what went wrong and you never know what you will get with a 30 year old used transmission.