My transmission seems to slip in first gear and drags before being engaged and it smokes. The traction control light (yellow triangle) appears on the dash as well as the check engine light. Sequentially what is the first concern?

What is your question?

Slippage in 1st gear Slow to engage in gear Smell of smoke and or transmission fluid High RPMs before being engaged Traction Control signal is on the dash (yellow triangle) Check engine light is also on No noticeable leaks on ground

What makes this problem better or worse?

When not in gear it sounds normal. When idling.

How long has your 1997 BMW 528i had this problem?

Unknown. The car was dormant for a while.