I now have driven the car and checked the fluid. The car does not shift, it stays in first and top speed is 20-25 mph, then the engine will just rev up and no power is transferred to the wheels it just coasts. Now it won't even go into reverse. Luckily this happened after I got it home in the garage. The fluid level is fine but it does look more grayish then red and smells, but not really a burnt smell. When I put the car in D there is a rough, grinding sound coming from underneath the car. In R it does nothing, even when I press on the throttle. I haven't been able to pin point where the grinding sound is coming from yet. The TC(3400) has been in for about a year, but has not been driven hard more than a few times. I do have a tranny cooler, also. The stock engine is running fine.

 

Sounds like the trans is fried. Discolored fluid is a dead give-away. Drain the fluid and drop the pan and check for debris in the bottom of the pan. If you have grey-matter in the pan your clutches are gone. If you have lost coolant then you might have a bad trans cooler in the radiator contaminating the fluid causing your clutches to get destroyed.