Do I have a serious transmission problem?

Really need to have the codes Checked for your Check Engine Light. see this article: http://repairpal.com/check-engine-light

Shouldnt be hurting the motor but it sounds like a trans issue. One either the valve body and solenoids is worn out or it could be that the clutch packs are burnt out. Would need to perform checks on the trans to determine the cause. Hopefully this helps.