Cant figure this out...major issue..help
 

My son's college car is a 2003 Accent with auto trans and a 1.7 L with just at 90K miles. a few weeks ago we changed the motor oil and checked the trans fluid. It was very low, trans fluid, and we added a couple of Qts of fluid. All was well, then today while I was driving it and came to a stop sign, when I took off smoke bellowed out the exhaust and then it cleared up until I came to an almost stop again and once again smoke bellowed out but when rpms got up it was doing fine.......NO dash lights at all during this entire ordeal.....Got it home and checked fluids again...showed way over full on oil dip stick, I only put 3 1/2 qt. in last time so I figured my son must have added...thought I would drain some out. As Im sure you know the SP III has an odor to it and when I drained the oil I swear I could smell the trans. fluid in the motor oil. Checked the trans fluid and it was just over a quart low again. Filled up the trans fluid and changed motor oil again. Started the car and it smokes like crazy but you can smell its NOT unburned fuel...it smells like something awful burning. Still no engine lights....Put in 3 1/2 quarts of motor oil and it still shows way over ful on the dip stick. YES I know I put the fluids in the correct spot. Double checked myself on that..LOL.. Any suggestions on what may be happening here? Thanks in advance for any help.

first thing i'd like to know is are you doing fluid level checks when both cold AND warm? that would explain the different readings. do NOT trust the cold marks they are not accurate in any car.

as far as trans fluid getting into your engine and burning...i just can't see that happening. the auto trans fluid is totally seperated and sealed from the engine oil, forget it getting into the cylinders.

start by checking for leaks, its possible that the fluid is leaking and burning on the exhaust or something creating that smell. also whats the trans fluid smell like directly from the trans? should not smell burnt.

the smoke when taking off like that is pretty classic to valve seals leaking...keep an eye on your engine oil. if its dropping, well...time for some head work.

and its a 1.6L not a 1.7 :p