The most likely scenarios include:
* Cracked or damaged engine block: This is the most serious possibility. The holes might be fractures in the block itself, allowing transmission fluid to seep through. This likely requires major engine repair or replacement.
* Incorrect installation/repair: If there was recent engine or transmission work, it's possible something was installed incorrectly, creating a pathway for fluid to leak from the transmission into the engine block. This is less likely but needs consideration if recent repairs were made.
* Severe internal damage (unlikely): Extremely unlikely, but catastrophic internal engine damage *could* potentially create holes or pathways for transmission fluid to enter the engine block.
You should NOT drive the vehicle. Continuing to drive with this leak will cause significant and potentially irreversible damage to the engine. The transmission fluid is not designed for lubrication of engine parts, and mixing it with engine oil can cause catastrophic engine failure.
You need to have a qualified mechanic inspect the vehicle immediately to diagnose the source of the leak and the extent of the damage. Ignoring this problem will lead to much more expensive repairs down the line.
