Could Torque Convertor issue really be the GEM unit?

[98EXPY 5-0]

Is it normal for the dipstick tube to partially fill with transmission fluid while driving? I knew there was a hole because I was driving and saw smoke when I stopped. The fluid had leaked on the exhaust. Does that mean it's too full? Or is that like an over flow area?

 

[98EXPY 5-0]

Hole

 

[98EXPY 5-0]

I found one from an online junk yard for $35 shipped. I guess thats a good deal.

The only yard I know around here that has Expeds always wants to sell the whole thing. No throttle body, have to buy the motor. No fender unless the rest of the front clip is trashed.

Dealer price for a new tube was $25.

So I got that installed.