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5KS Transmission Repair/Replacement

I am not a subscriber to the digest and would, therefore, appreciate a direct 
reply to the following:

I have a 5000S wagon (1987, no turbo, no quattro) that I need to sell to make 
room for a new car, but it has what I believe are terminal transmission 
problems.  It's an automatic with over 75k miles.  When I start the car it will 
either remain stuck in neutral for a few minutes, or remain stuck in first gear 
for some time until it finally shifts.  This doesn't seem to be related to ATF 
temperature, because it will turn to semi normal fairly quickly.  I say semi 
normal because I feel that even when the transmission shifts, the car is 
somewhat sluggish and suspect more transmission problems.

So,  is this a sign of a dying transmission?  Can it be repaired, economically 
that is.  Am I better off searching junkyards for a transmission?  Any leads on 
a good source for the lowest cost in the Maryland area?  Has anyone replaced 
their own transmission?  How tough a job is it?  Is it worth having it done 
professionally?  I have a quote of $385 for labor only.  That's about an 8 hour 
job at $50+ an hour.  I figure it's at least!! a weekend for me.

Anyone in the MD/VA area interested in a sick 5K wagon that can be made 
healthy?  I would be very reasonable in pricing!

Thanks all
Peter Rossato