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5000s trans

I have the unhappy opportunity to request for comments from this list, 
regarding the 1985 5000s transmission.
Yes my daughter was driving it to work( imagine violins playing mournfully 
in the background) and while taking a corner, form a dead stop at an 
intersection, the car(as she reported it) "BLEW UP".   it seems that the car 
made a  really big ugly noise, the engine rpm went over 6000 and then 
stopped.  @$$$!!!&????   We had it towed home and after recharging the 
battery (the emergency lights were left on) it started up nicely.  I checked 
the fluid levels (we just had the oil changed and the differential level 
checked) and all was well.   I put it in gear (3 speed auto) and got about 
30 feet away when the big ugly noise began again!!! it sounded like gears 
ripping the teeth off each other it truly was UGLY.
Can anybody tell me what to suspect and how much expense to anticipate? 
 I'll have to sell another body organ to pay for it uh?  Perhaps I should 
have kept my brain instead of selling it to get the car.   It has  90,000 
Miles on it and except for a dent where a tree branch fell on it last month 
it is in great shape ... well used to be anyhow :-((