Do I need a new transmission? Or a secnd Lucas Conditioner treatment?

I have a ford Escort 2001, automatic (38,000 miles). two weeks ago I started having problems with it. On occasion when I press the gas, it would not go in gear. So I had a mechanic (non licensed) friend of mine,
look at it. He changed the transmission fluid, the filter and put in some Lucas Conditioner (helps prevent gear slippage). I think the previous owner told me he has towed this car for few thousand miles, (but he claims he did not do it on all four wheels, I don't believe that). The old transmission fluid was dark gray in color, the filter full of liquid metal shavings.
I have since driven it for a week. On the first day, it would happen every time I drive, that it fails to go in first gear. It always works fine when it's cold (first 5 minutes or more). After driving it for a week (with Lucas conditioner), it has improved. However it still transitions from one gear to an other poorly. I hear it revving often, for 5 second between gear, and then you can hear it finally shifts in to next gear. It only happened once in the last three days, where it would not go in into gear at all. Then within 5 second or so it kicks in (usually it requires me to go to park or 1st gear and back to drive, then it kicks in). This only happens I slow down to a stop.
My question is, should I spend some more money for a second Lucas Conditioner and fluid change. Or should I go straight to installing a used or reconditioned transmission. Or does it sound like it should go back to normal after a second conditioner treatment? Thanks
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I'd try another oil change - but instead of Lucas I'd put in a bottle of Ford Friction Modifier - used in Ford diffs. (stinky blue stuff) It has been known to do wonders with sticking valve bodies. If that doesn't fix it, no harm done, you replace the tranny anyway.
I suspect you still have fluid contamination, as you did not flush the converter.
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sorry if I am not understanding you (not mechanically literate : ) ) Why are you suggesting adding friction modifier to my oil, when I have a transmission problem, not engine problem. The Lucas is a Conditioner for the transmission, but the friction modifier I believe is for the engine, right? tx

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engine,
Friction modifier is used for the clutches that operate in gear oil in factory clutch operated "locking" rearends. As for using it in your transmission I have no idea about that.
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Just my luck, today it started making a rattling sound when in gear. Sounds fine in nutral. Also, in certain rpms the noise goes away. It sound like I will need a new transmission.
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Sounds like a heat shield to me. Have you checked them? There are (were) 4 of them. Two around the catalytic converter and two just past it.
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And the welds do break on them (in which case, you just whip out a big hose clamp and wrap it around the whole thing and tighten)
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