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I had a similar problem with my 2003 S-10 and the trans fluid line. I was half way through a road trip in BFE when I realized I was running through gas faster than normal. Then the engine started going erratic on the RPMs. Long story short I pulled over, walked to the back of my truck (which was smoking a little) and the entire rear bumper and tailgate were dripping with trans fluid. Got it towed and they found one of the line retainers had come lose and the hose came in contact with something which rubbed a hole in it. Only had like 22,000 miles on it. No damage to the trans and I never had another issue with it. Was not fun though.
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