Isn’t possible that the dipsticks were swapped at some point and Peter is in fact adding T-fluid to the crankcase? Plus, the dipsticks would not give accurate level readings, so perhaps the transmission dipstick never reaches far enough into the crankcase to show ANY fluid level! He did say that he is using the dipstick pipe to add fluid.
I am having a similar problem and found this possible solution:
“Sounds very similar to the problem I had years ago with a 71 VW 411
3 door wagon. Same thing happened, that being the transmission
fluid ended up in the crankcase with little left in the xmission.
Problem was a ruptured vacuum operated transmission modulator valve.
Vacuum in that case supplied by the gasoline engine. Since vacuum
for our diesels is supplied by a pump instead I have not studied exactly
how vacuum would pull the oil from the xmission into the engine but
I suppose there could be a way. Worth a check of the xmission
vacuum operated modulator valve anyway.
Regards,
Chas Mattix”
I was kind of thinking the same thing Russwig, but yours makes even more sense. I was thinking that they were swapped, and on the caps were marked “Trans” and “Oil” but I was thinking that on a lot of vehicles, those sticks can be quite different in size. So I think you may have got it. Hopefully they’ll give us an update next week. Do you think they were really serious about him bringing it over?
I’ve always found the best mechanics are the ones that are willing to learn, even from those of us that don’t wrench for a living. As a teen, before I wrenched much on my own, I had a mechanic that would tell me what parts he needed to fix my car or my Mom’s car, and I’d go get it. He had no problem with that cause he didn’t have a parts runner much of the time. Once he needed a distributor for my 4 cyl Olds Starfire. I got one from a junk yard for a 6 cyl and he told me that a 6 wouldn’t work. I took it home and took a hard look at it, and it seemed to me that the ‘cam’ on the distributor, which had 6 humps, could be changed out with my 4 cyl dist. which had 4 humps. Took it back to him and showed him. He took the tools to it, dropped it in, and told me to start it. It worked! He said he never knew that could be done on those. Good guy. After I moved away my Mom and then step-father continued to go there. It was nice as he was only 1 block away. He’d send a guy to come pick up her car and they’d bring it back, open the garage door, and even garage it and close it up for her! That’s the kind of mechanics we’d all wish we could find. He’s still there although his kid runs it.
It is always great when one finds a mechanic that one can trust and work with. That is gold as far as I am concerned. It becomes harder and harded to do as the technology of the cars gets more and more sophisticated. The corner garage just cant’t afford to train for such things. On the other hand, vehicles do seem to be getting more reliable (at least I hope they are).
As for ever finding out the solution to Peter’s problem… That was an “Encore” show so I believe it is really snippets of other shows so his call could be many months old. I did request Peter be brought back on “Stump the Chumps”. We shall see…
Update:
In my case, it looks like my fluid is just a normal leak and my engine
oil level is just high for a change. I checked my vacuum line at the
modulator and there is not any fluid present. Now it will probably be more than an easy $15 part replacement 
Will still check my oil level this week to make sure though.