How did you check the oil level? As i recall these transmissions don't have dip sticks or windows to see oil level. It is also almost non serviceable. It's a common problem with these gearboxes. You ought to get it rebuilt. most likely, the valve body needs to be serviced or there are faulty oil preassure censors, worn out clutch plates, etc. Once opened you could also find broken plastic shims. These are the norm. Sell the truck while you can or convert it to a manual if you want to keep it. These problems would return after it's fixed. Good Luck.
sean, May 2007