1992 Legacy Wagon Tranny issue

Greetings everyone! Entirely new (See my awesome post count of ONE! X) ) .... anyway, I've got this 92 Subaru Legacy wagon that my buddy more or less gave to my friend and I once we relocated to NM (sold both our existing vehicles to get here) and it's been ok. Till yesterday. The trans power light did it's 16 blinks (as it's been doing for... a while), and when driving to pick my buddy up from work, I noticed it was running high into the 3-4k range whilst shifting from first from a stop. Everything else was fine though. Now it won't shift into OD from 3rd, and if I put it in 2nd while moving, it basically acts as if it's in neutral (rev's jump way up, and no power feels like it's being delivered to the drive system)

My initial thoughts are a sensor or solenoid of some type, but my gut tells me that the trans is all but dead at this point. I'm supposed to work this evening....but I don't know how that's going to go. Any ideas, thoughts, helps, redirects to links // existing posts are greatly appreciated. I'm mechanically savy, though by no means a master. I've always done my own work, except for that one time with an oil pressure sensor on an Explorer. (I also ramble)

Again, I appreciate all and any's help.

ps. I did some basic searching first, but found nothing that matched my symptoms.

Having had experience with the first gen auto tragics, my guess is that you're correct -- toasted trans is toasted. :/ After so many miles, and any kind of road driving, let alone any spirited driving, those trans pretty much just give up on you altogether. Not one of SOAs greatest products, despite it being mated to an engine that can easily go for 1/2million miles or more. . .

Seek out a qualified transmission repair place to see how much you're in for, but, used 4EATs for that year shouldn't go for more than $400 (if you can find one)