Some Transmission Toubles
 

So I just picked up a 95 GMC Jimmy 4DR with 160k on the OD, auto trans and just tonight it's been giving me some transmission troubles.

WHAT IT'S DOING:
Starting from idle, to any drive (both reverse and drive) I'm getting hesitation and what I think is a clunking sound (as if the driveshaft has broken and is dragging on the ground). After checking the trans oil, it's a dark brown color and it was hot after driving, like through the towel that was used to clean it to check the level it was still very hot.

Accel and decel from 1st to 2nd and all of the other gears is flawless, it's just from a stand still.

So what I think is the problem is that either,
A. It could really use a good trans fluid flush
B. Bad TQ converter or whatever that thing is called (spare my n00b'ness of auto transmissions)
C. Bad Auto trans, needs replacement or rebuild.

All worthy input is appreciated, no BS please, don't give me the worst-case scenario if you haven't gone through all of the other smaller possibilities, I've already learned the hard way from that one.

i would start with the flush and filter change. if that doesnt help then i would think rebuild the trans.

I talked to a couple of my friends, one has a rebuilt trans for 425, then I know some other people that would be willing to put it in for not much other than a little cash and a good dinner, so that's likely going to be my plan.