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Overfilling tranny causes damage?

In message <199711150820.AAA15939@mail1.teleport.com> "Scott M." writes:

> I don't know how much you need to overfill the Audi
> transmissions to have this occur ...

On a Ford Granada 2.0l EFi 3-speed, about 1 litre over the mark will blow the 
transmission within a couple of weeks.

(In the outside lane of Broad Street in Birmingham, in the middle of the rush
 hour - causing a jam that made BBC national radio.  BTDT - NDIA.)

I also once had a Scirroco engine over-filled because of an incorrect dipstick.  
How does this happen?

 Phil Payne
 Committee Member, UK Audi [ur-]quattro Owners Club