93 Ford Tempo Transmission problems

Working on a friend's Tempo. The transmission was recently replaced with a used. He said that it was driving fine, but when he tried to get on the freeway it had a hard time and he could barely maintain 60
with his foot to the floor. Ultimately, he had to be towed after coming to a hill in town that he couldn't climb. I checked his fluid level and it was very low. What I've noticed is that when the engine is idling and in park that it's acting like it's in gear. The engine won't rev, but the fluid got hot very quickly. When placed in drive or reverse, no amount of throttle will make the vehicle move, but as soon as the throttle is removed, the vehicle will lurch forward a couple of inches. I'm not a Ford man and am not familiar with their transmissions. Can anybody give me an idea what could be wrong?
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