Thank you for the replies. That's funny your wifes Jeep is doing that as well. On Saturday I was under my wifes 05 Grand Cherokee, and sure enough, a similar line is leaking. I am going to try and just do what you said; it seems easier than buying a whole new line.....
The fluid is in fact red in the tranny; when it trails down the tube it mixes with smut on the runner hose, causing the darker color.....
Thanks again, and if you think of anything else please let me know!
Mike