Same here. Just had mine replaced by a local reputable shop with a re-man for about $4500 or so out the door. Yes, the warranty helps soften the blow. At first I was a little pissed. After they walked me through the list of parts needing replacement (cracked 5-6 drum, cooked torque converter, new valve body, seals, fluid, labor, etc. etc.), it didn't make much sense to go down the re-build path.
I bought mine with about 85K on the clock and have zero background on how much the previous owner(s) may have abused it. I knew I was taking a gamble and unfortunately it bit me in the ass this time. Oh well, look at it this way--now you should be good to go for 100K or more, hopefully. If you add a bigger trans cooler and stay on top of fluid changes, maybe more?
I dunno, food for thought. You're not alone.
