Transaxle light comes on when driving longer distance at higher speeds. i think i just need to add transmission fluid but cannot find the place to check or put it in at. i found a little spot next to the battery that is a small cap and says use only chrysler cvft-4 transmission oil, is this were i add it at?

The gears have went out and it's need for a new transmission.

is it auto or manual ? the inner trans axle are the drive shafts , don't think they would stop engaging gears , would be best to get a mechanic as could be a number of things

Well, the car is 20 years running on the road, one can expect gaskets and seals to start leaking. If you stop the leak and keep it full, you may be alright. But running low fluid for very long will definitely damage the transmission, so do get it fixed, and keep it full but not overfull till fixed. There aren't that many places for an automatic to leak. There are axle seals where the two front axles go into the transaxle. Fairly easy to replace. There is a gasket where the bottom fluid pan bolts to transaxle. Also fairly easy to replace. There are two fluid cooling lines from transaxle to radiator or to a small radiator-like cooler in front of radiator. Leaks can develop in the lines, at the fittings where they connect to transaxle or to the radiator. Leaks anywhere there should be fairly easy to fix. There is another seal, a front transaxle seal, and if bad, fluid will be dripping off the bottom front of the tranny where it mates to the engine. If this seal is bad, the transmission will have to be removed from vehicle to replace it. A $5 seal, but the fix requires pulling the transaxle-ouch! That is about all the places where leaks can develop-except there may be some bolted on or screwed in fittings (like the reverse light switch, for one). These fittings would have seals, O-ring seals, or gaskets that may start leaking.
If it gets low on fluid that fast, it would seem that you should be able to spot where it is leaking. Use rags and wipe off all the old fluid and dirt from the transaxle. After a drive and then parked, you may be able to see where the leak has allowed new fluid to escape. Good luck.

Some early vehicles may be equipped with the A-412 manual transaxle. This unit can be identified by locating the position of the starter which is found on the radiator side of the engine compartment. If it becomes necessary to add fluid to this unit, SAE 80W-90 gear lube is recommended.
If your vehicle has the A-460 or A-465 manual transaxle (4- and 5-speed transaxles respectively), the starter will be next to the firewall. When it becomes necessary to add fluid to this unit, AFT+3 is recommended. On the A-520 and A-555 manual transaxles used in 1987-88 models, add SAE 5W-30 SG or SG/CC or the equivalent.

LEVEL CHECK -manual transmission The vehicle speed sensor (speedometer gear), which is located on the transaxle, serves as the manual transaxle's dipstick.

1. Park the car on a level surface, turn the engine OFF and apply the parking brake.
2. Locate the speedometer cable assembly where it enters the transaxle.
3. Unplug the electrical connection from the vehicle speed sensor (speedometer gear).
4. Disconnect the speedometer cable from the speed sensor.
5. Wipe the area around the speed sensor with a clean rag, then loosen the speed sensor retaining bolt.
6. Gently pry the speed sensor from the transaxle. Fig. 1: Location of the manual transaxle's fluid level marks — 1.8L engine
   Fig. 2: Location of the manual transaxle's fluid level marks — 1.9L and 2.0L engines
   
   
7. Check the condition of the speed sensor O-ring and replace it if it is damaged.
8. Check the fluid level on the speed sensor as illustrated.
9. If the level is low, place a funnel in the speed sensor hole.
10. Add the specified fluid to the transaxle until the FULL level is reached. Do not overfill the transaxle.
11. Install the speed sensor and tighten the retaining bolt to 69–104 inch lbs. (8–12 Nm).
12. Connect the speedometer cable.
13. Engage the speed sensor electrical connection. Fig. 3: If necessary, add transmission fluid through a funnel into the speed sensor opening
    

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Drive the vehicle long enough for the transmission to reach normal operating temperature.
Step 2
Park the vehicle on a flat surface.
Step 3
Let the engine idle with the transmission in park.
Step 4
Locate the automatic transmission dipstick. It will be in the front of the engine compartment attached to the transaxle assembly.
Step 5
Remove the dipstick and read the fluid level it should be between the MIN and MAX mark.
Step 6
Add automatic transmission fluid if the level is low. Place a funnel in the dipstick tube and add as much fluid as need. Do not fill over the MAX mark.
Manual Transaxle Step 1
Park the car on a level surface and wait until the engine is cold.
Step 2
Lift the vehicle according to instructions listed in the owner's manual and support with jack stands.
Step 3
Remove the belly pan from underneath the engine/transaxle by removing the screws on the rear edge and disconnecting the hooks in the front.
Step 4
Locate the check/fill plug on the side of the transaxle.
Step 5
Clean the area around the check/fill plug.
Step 6
Remove the check/fill plug
Step 7
Use a hand pump attached to a manual transmission fluid bottle to pump fluid into the check/fill plug hole, until fluid begins to seep out of the hole.
Step 8
Reinstall the check/ fill plug.
Step 9
Reinstall the belly pan. Insert the hooks on the front edge of the belly pan into the holes on the vehicle's frame. Then reinstall the screws that support the rear edge of the belly pan.

CHECKING FLUID LEVEL
1. With the vehicle on a level surface and the fluid in the transaxle cold, remove the filler plug and check the fluid level. The fluid should come to the bottom edge of the plug hole.
2. If the level is low, add SAE 80 manual transaxle fluid through the filler plug hole until the fluid begins to run out.
3. Reinstall the filler plug and tighten it securely. The speed gears and the synchronizer parts on this vehicle receive lubrication through specific passages in the mainshaft. It takes 1.8 liters (1.90 quarts) to fill the transaxle completely.
its located next to drive shaft some on left hand side others on right hand side depending what gearbox.

Transmission is worn and previous owner has added transmission fluid additives like Lucas transmission oil to try to make it last longer. The fluid is burn and needs to be changed, best thing to do is to have the transmission fluid and filter changed and add some additives to the fluid and try not to drive it to hard.
It shift's hard when your driving at normal speeds because the fluid is thicker then it should and the transmission line pressure is higher due to the thicker fluid. At WOT the transmission slips so it seams smoother and that's why the fluid is burnt.
Good luck and hope this helps. Do not do a trany flush, the transmission is already worn out, but the dirty fluid will make it worst too.

use a very small funnel placed into the dipstick tube check frequently with the dipstick so you don't overfill