I assume you mean an AOD? It is located at the rear of the passenger side of the engine. You put the fluid in the same dipstick tube. Make sure the car is up to temp and running in park to check the level. Do not overfill the transmission. You can use Mercon V fluid.
yep. If the fluid level is too low, that can cause all kinds of problems including improper shifts to burning up transmissions. Heat is the worst enemy of any auto transmission and low fluid causes excessive heat.
Also check the (Throttle Valve) TV cable. It is a cable that attaches to the bottom of the Throttle Body and goes to the transmission, to control the shift points of your transmission. It is attached from the factory to the throttle body with a plastic bushing which often brakes and leaves the TV cable loose and rattling around in the attachment hole or worse laying on the valve cover. I recommend replacing the plastic bushing with a ford brass bushing that attaches with a small metal clip. An improperly adjusted TV cable will also cause incorrect shifting. Do NOT attempt to adjust this yourself unless you know what you are doing, as you can easily fry your transmission in a few miles with an improperly adjusted TV.
How to adjust your TV cable at home. The preferred method is to have a transmission shop adjust it using a pressure gauge.