Automatic trans and radiator

[my8950]

I've got an 85 XR that I am finally getting to work on. I took the radiator out last week to gain access to the timing gears to replace old belts and clean everything up. When I removed the trans fluid lines that go to the rad, there was water coming out of the bottom line. My assumption is, this is not good. Car has sat for years, unknown amount of time.
My plan is to remove the trans lines at the actual transmission and see if I get water on that end as well. If so I'd say there is probably water inside the transmission. I've never had an auto, but I'm pretty certain water in the fluid is a no-no.

Question is, if the radiator is bad, it would leak coolant into the trans lines? Then take out the entire transmission? This seems like a crap design, not surprised, just kind of crazy to think this...Truth?
All I'm trying to do is get the car running, that way I can find out the rest of the stuff on it which doesn't work.

[milehighXR]

I just pulled my auto 86 out of mothballs after 5yrs. I had water in the trans oil too. I was able to drive it about 30mi before the water affected the viscosity enough to act like the trans was low on oil. I dropped the trans pan and did a fluid and filter change, and that brought er back to life. However, doing that only gets about 4-5 qts out. You'll need to do it a few times to get all of it out. I usually like to do these kinds of things(engine oil too) when the oil being changed is nice and hot. That way you get as much of the old stuff out as possible. While you have the trans cooler at the rad disconnected, get some caps from home cheapo for the rad cooler, and then get some flared ends to match the cooler lines and install a large independent trans oil cooler. This way if/when the in rad cooler fails you get more strawberry milkshake