1954 Ford Victoria

I am working on one of my dads 4 1954 Fords. We got it running after sitting for several years. I cant figure out what is happening with the transmission fluid level. On startup the ****** fluid level is low, once we start driving it the level raises and comes out the dipstick hole and spills out. We stopped right away with engine running in Park and the level goes back down slowly. Once we drive it again the level raises and overflows. It is shifting and working with no issues just cant figure out why the level is up and down.
 
I spoke with a transmission rebuilder and he thought it might be the dipstick tube o ring might be worn or rotted Any Thoughts???
 
There may be a jiggle valve on the top area of the trans to vent it. Most auto trans now have them, but not sure of the early Ford auto. Perhaps that is plugged with road dirt or accumulated oily debris..
 
Sounds like the vent is plugged like Streetdreams mentioned. Cant recall where the vent is but is should be on top of the trans case or tailshaft housing.
 
The vent is on top of the main body case. You cannot access it to properly clean it out. It screws into the case, so just remove it and thoroughly clean and replace. Sounds like the culprit to me.
 
You guys were all correct. I pulled the pan off the trans last night, and It looked brand new. Fluid was spotless, screen was clean. found the little jiggle valve vent to be rusted shut. not air would pass through it at all.The vent is on the passengers side at the top of the transmission. Very easy to access from underneath the car. It is 7/16th and unsrews. This plugged valve would also explain when we were adding transmission fluid down the tube it was burping air back at us. I cant wait to try to drive it tonight. Thank you for your help on this one.
 
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