Auto Parts: 94 Cherokee Tranny Problems???, auto tranny, tranny problems

Question
My daughters 94 5.2 V-8 Auto Tranny has a Problem, She was Driving into Town & Said it made a Loud Popping sound. Now it will move somewhat but not very Far? Shifting transfer case into hi or low makes no difference, Sometimes it will make a Grinding noise, Most time Not......

Not sure where problem may lie, tranny or Transfer case???
Can get a Tranny from a 97 6 cyl Auto, Is that compatable for the V-8 Engine??

Thanks, Rick

Answer
    First thing I would do is change the fluid and filter in the trans, making sure that it is full.  It is a Chrysler transmission, and they are famous for clogged filters reducing fluid pressure to nil.  Save any parts you find in the pan; it'll be shot, but the pieces will tell the repair guys something about why and how.  The number and nature of the noises that you are hearing makes me a bit nervous, though.  I would be tempted to take it to a shop.  Just don't go to a franchised transmission shop (such as AAMCO), they will rip you off.  As far as I know, the 6 cyl trans is very much different from the V8 model.