Jeepboy
As someone who has a buggered auto, my amateur prognosis based on what you've written and the advice I've received from experts (after they've pressure tested the box and investigated contaminants in the oil) is you may be up for some large biccies.
I have a 98 tdi Disco auto. It has a touch under 140,000 k's on it, the engine is sweet, but the gearbox has always run a bit hot. 6 months ago, I replaced the standard auto cooler with a much larger one from a P38A range rover. This seemed to sort the overheating issues out, but three weeks ago the gearbox started slipping like crazy and wouldn't change out of 1st until I got the revs waaayyyyy high (regardless of cold or hot) and the oil smelt like it had served time in a blast furnace (didn't smell good at all). I now know the damage was well and truly done (most likely by the previous owner, who used to do a lot of towing of horse floats).
Solution in my case is replacing the existing auto with a fully reconditioned exchange unit from A&B Automotive in Dandenong (with a 3rd gear lockup conversion, apparently much better for towing). It arrives tomorrow and my local Landie experts get to change them over on Tuesday. I haven't been able to get anywhere near my wallet for some time as it is still smoking hot ........ 
. I'm hoping to get out of it without going over about $3600.
I hope you get yours sorted out, but it's sounding kind of familiar........ sorry 
.
Goldey
Just arrived: 2012 D4 3.0 HSE, the journey begins again ;-).
Gone: 98 Disco 300tdi Auto, and some extras
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