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I have an '88 700r4 tranny in my '72 vette, hotrod....
just now, I think I blew something critical...there is NO third gear, just freewheels, forward or backdown, engine freerevs...1st and 2nd with lockup are normal.....goes into gear fine....move lever to 2nd to keep car going uphills...
any ideas??? tranny fluid is full of bubbles on dipstick, runs at 178F in temp...and appears normal, not scorched or burnt/anything....tranny was redone allmost 5 years ago and in car fine since then...this happened just today all at once on a blast down the road....engine revved way up...I lifted....
These seem to go in many different ways. The 700r4 is not my favorite right now. It blew in my vette last year, was cruising along, heard a clunk, was left with 1st and 2nd gear only (but unlike yours, I could smell it burning). Turned out one of the planetary gears had broken and spewed needle bearings through everything.
Last week, the 700r4 in my truck went. This time, one day it felt like it was slippping a little, the next I had no reverse. This time it was the reaction shell, so yet another GM POS tranny needing rebuilding.
Don't think that was much help for you, but short answer, be ready to rebuild.