2nd gear in autotranny not working

i was driving my car around town pretty hard, was in a hurry and im running it through the gears, i shift into second and the enging just revs

few seconds later i can smell and see the tranny fluid burning off the exhaust
this lasts for about 5 minutes (the leaking) then it becomes not noticable
(its always got a small leak) but this was a biiig leak for a few minutes

now, i have had troubles with my gear bands coming out of specification
i dont have my book that tells me what they are supposed to be at, nor do i have a jack that can lift the car up, so i cant get under and adjust them
although, i did a few days ago (very long story) but didnt have my book
the bands looked find, but i have no idea if it was adjusted right

basically the bolts on the bands had been rotating out of the tranny
but they were both in tight this time...

now, thinking back, i had seen this similarly when my gear bands had gone out; but then it was obvious it was the bands as they were obvioulsy way out of adjustment

my friend said something to the effect that bad torque converters could cause a gear problem also -- considering my tranny is like 2 years old (rebuilt) this is not desirable at all

when i get home, im gonna try to adjust the bands, even though ive never had to scientifically do it correctly, i just had to tighten them

is there any other things you guys can think of that i might need to check for? i was thinking maybe some kind of linkage or something, but really i have no idea

thanks in advance,
Jon