BMW: 1988 bmw 325 i, tranny issues, bmw 325, sludge

Question
i was driving down the freeway, then all of i sudden i lost power. the only gear i have was reverse. i took it home ,drained the fluid and removed the pan. in the bottom of the pan was metallic sludge, and it was really thick on the pan magnets. is their any other solution other buying a new tranny or rebuilding it.

Answer
Bryan,
 You can try to flush the transmission and replace the filter, but I think the problem is that the clutches are shot (hence the black sludge).  

 You will probably need to get yours rebuilt, or buy a used, low mileage, replacement.

 Hope this helps,
 Josh