trans problem , HELP!!!!!!! for the experts please

[Brent in NZ hartge 535i]

hi, have picked this 1992 E32 730i V8 m60 engine 5spd auto . was a repo car . been sitting for about 6-9mths . engine was running rough and smoked .
i have sorted the rough idle and smoking ( pcv valve , ICV & a vac hose leak ) but also it had trans fluid in the coolant system . so i have swapped another radiator in to it from a dead 735i i had here. that sorted that out , i have changed the fluid in the trans , then took it for a drive ( seem to be ok except for slow changing back to 1st gear when comming to a stop quickly ,so a bit of a delay when driving off b4 it grabbed). stopped somewhere came out and noticed the gear lever very stiff when put into reverse (hard to move) so i moved it forwards and backwards to free it up , then i lost all gears ,wouldn't go into park (cable still working ok underneth) , had to get it towed home . put it up on axle stands pulled the trans pan off , found the lever inside the trans that conects to the valve bodies had poped out and was stopping the gear lever from going into park and selecting gears .
so i put it back on and cleaned pan ,filter and as much of the inside of the trans as i could with kerosene and WD40 .reasembled , fuild up with dexron III trans fuild again and took it for a drive , still had the slow down change into 1st when comming to a stop . but other wise ok . then after about 15mins the gear lever started to get all stiff again , so i turned around and went home , by the time i got home i could hardley move the gear lever back in to natural . whenthe car had cooled down you can move the lever again and by the end of the day when stone cold it had freed up to just about normal .
so i was wondering if i need to remove and clean out valve body or is it something more than that .or is fuild still got some water in it or wrong sort of fuild . is there rust in some of the parts fromthe water that was sitting inther for a few months . please help anyone .
sorry for the long story ( and bad engrish).
brent . retrah1@wave.co.nz

[632 Regal]

Brent, what I would honestly do is make a phone call to this guy and talk with him. Sometimes he is hard to get a hold of so you might have to call a couple times. He works for an authorized ZF transmission dealer and really knows his stuff.
Best of luck to you!

KURT KOHLLER
(800)624-3876 ext 5735
or direct at (616)748-5735

[Brent in NZ hartge 535i]

thanks a . i take it thats in the usa . i'm in New Zealand