Excellent ideas every one , thank you all. I have answers below and
some new questions for you, watch for the question marks and i don't know smilies.
The fluid does not smell burnt and is still red, not brown. Fluid level it is up to the full mark.
Interesting that one of you mentioned that
the codes could be from long ago and were never cleared. That could be the case, as i didn't clear the codes for almost a year now, b/c I was told from guys at the auto parts stores here
locally that, they will clear them selves once the trouble is repaired. is this true? the codes will be cleared automatically? or is it folk lore?
But out of desperation, last wed. evening I filled the tank and silicon-ed the gas cap and installed THE CAP WITH THE SILICONE ON IT. To assure I had a tight seal, and thus perhaps tell me if i had a leaking gas cap or not. Thursday my wife drove the car for 148 highway miles. That same Thursday night I had the autozone guy check the codes to see if any had cleared, and none had. at that moment, out of pure frustration, I asked for the test unit, and I cleared the memory! Friday , my wife drove the car, this time for 148 hwy miles, and 40 miles off highway. Presently the check engine light has not come on! So pleased with that good news!.. I took the car Friday evening to the auto inspection center, in hope it would pass the required annual inspection and I could be cleared to get my new license sticker for 2013. But the technician, after examining the car, came to me with Questions of : has anyone worked on the car ? have any parts been replaced? Some one has cleared the computer's memory !, did you do it? and you'll have to drive the car for more miles before another 'set' of checks is established,... and so I can not pass your car at this time, please drive your car and come back to see me. I was pissed! and fuming!
SO I ask you guys,: would what the tech, guy asked of me, correct and proper to ask me?..and is it any of his business to know why the memory was cleared? and by who?
And this talk he gave about
another 'set' of checks has to be established, is this correct? or simply smoke up my ass?
I will share with you that:
There is a slow leak at the seal where the axle comes out and goes to the wheel. I say Slow because i can usually add a quart of fluid every month or two. I placed a newspaper under the driver's side, and left it over night, in the morning a 10 inch stain was evident on the newspaper.
Ive been adding a quart of fluid at this rate for 6 months now.
and keeping that bit of info in mind.....
My car repair / service records indicate that: In April of 2010 at 78,900 miles,
I changed the tranny fluid and filter. The car now has 165,000 miles on the odometer. The filter was covered with thick grey/ silver colored matter, as was the pan. I have since Wondered, what that stuff was from?

Will this info change any of your thoughts, and advice / suggestions for me?
yes there is hard shifting present, I may as well call it
slam shifting! it happens during in town driving, not highway. But that is better for the clutch packs is this not?.... since now, there is less slippage as they apply, correct? ....just like you want in racing trannys, correct?
Would changing the fluid and filter once again, help that much
even if the PCS is bad?
What is a PCS any way?
and Is the replacing of the PCS, something I can do; in my driveway; with the car on ramps?
does this transmission require the dextron type 6 fluid? ......I read in the manual to use type H, but I can't locate any of that type on the shelves of the auto part stores.
Thanks guys, I can't wait to read your replies!