Last night I was pulling the motor out of my '98 A4. When I started to lift the motor I heard fluid running out. I'd say at least 2-3 quarts of tranny fluid poured out between the transmission and the bell housing. The converter didn't appear to have slid out. What could it be?

 

I would bet that you pulled the converter out a bit. The pads of the converter should be in 1"+ from the face of the bell housing. If that looks good maybe you pulled the dipstick out of the hole. Vince

 

You're right about the dipstick, it came out, but I was under the impression that it would only run out if it were overfull.

 

The thing is that your converter could be draining back into the trans pan when the trans sits. With out the pump turning the oil just returns to the pan which in this case is the sump. Hope this makes sense. Vince