I assume it's an auto trans. If so I think there is some valve in the engine bay which has gone bad and is allowing trans fluid to transfer into the oil. I can't remember what it's called or where exactly it's located. I don't have a 2nd gen, or an auto trans for that matter, but I remember reading about the problem. Post a new thread in the "Stock 95-2000" section asking the same question. More people will see it and someone will know what it's called.
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Edit: never mind about moving it, BrooklynBay beat me to the punch.