Yeah, apparently the fluid in the tranny was building up pressure and blowing past a seal, every time I let off the gas and it loaded up it spit it out onto the exhaust and it was that burning up. Once the tranny cooled down for a few minutes, it stopped leaking and I didnt have any problems the rest of the day.

My dad said his jeep did the same thing (he bought a new Cherokee in 1993) and they never could fix it...but it just went away.