Noisy low/reverse and spitting trans fluid out breather- What gives?

[NOGEN 3]

OK bought an "excellent" condition V8 Traumatic from the wreckers for the dunger wagon only to find it making noise in low and reverse (I initially thought it was the extractors rubbing on the chassis but not-15-20mm clearance all thru', and also after a couple of minutes of run time, spits trans fluid out of the breather on top of the trans straight onto the extractors creating a potential fire hazard and a dirty gr8 big,"Look at me police, defect me for excessive smoke"!.
Any1 had this prob b4? If so, what the hell caused it?
Thank christ it's under warantee, but it'd be nice to know what it poss is so they don't try and blind me with bulls&^t....

PS-can I keep the amount of post I've made? (304)Kinda like the number....lol

[NOGEN 3]

Bumpety bump....

[VK1981]

does it hav a dipstik in the trans filler? just curious?