I never knew the O2 sensor was inline with transmission. That doesn't make any sense to do in my opinion.
Agreed, I'd rather they just route every sensor straight to the computer than through other unrelated components, some of which are major.
the plug where you plug in the electronic machine that gets the codes is broken, I was once given a repair replacement number to fix this, but I lost it before I could act. If I can get this fixed, it might help solve some problems.
My experience, at least so far, is that the CEL only comes on long after a problem starts to occur. But yeah, it's better to know than to guess. You might be able to find a replacement in a junkyard (make sure it's for an OBD II scanner, which started with the '96 model year, I think).
That said, the dirty wire connections didn't throw any codes. The O2 sensor did, but those wires looked like they'd been frayed for a long time.
Also, some of the info and warning lights in my instrument panel burned out. Two rows of them should come on when you turn the ignition key to on; I had to replace 3 or 4 amber ones (again, the junkyard is your friend). The CEL is amber. The red ones might be somehow hard-wired; I've yet to see how to replace them, though they all seem to be working.
And yes, definitely use ATF+4, which is Mopar-specific. It ain't cheap, but none of the synthetics are. I loaded up with several quarts from an Auto Value store when it was going out of business. Otherwise, the cheapest I've seen was at WalMart, and their prices just rose to over $5/quart. They don't stock gallon sizes, either. Don't know how much remains in the torque converter; mine remains very red after replacing 8 quarts, so probably very little.
And no, I've never flushed the trans, and have never had any problems as a result. You might consult the manual about it, but I consider it overkill.