1997 Cadillac tranmission trouble?

Half a handful? It's amazing the car even moves at all! Any metal chips in the pan is bad news. If they get past the filter they will chew up the rubber seals in the clutch packs. Those seals must not leak. When they do, the pistons can't stay applied properly and the clutch plates slip. Something is seriously coming apart inside. Once that starts it will only continue to get worse until the transmission is rebuilt. The failed part(s) must be identified and the cause of the failure must be rectified to prevent a repeat failure.

You would have to get estimates for that from some area shops. Every manufacturer has much more transmission trouble than they did 20 or 30 years ago but your model does not have any known history of common failures so a used transmission is probably nothing to be afraid of. With a rebuilt transmission from a specialty shop, you will get all of the latest updated and improved parts that were developed to address any known problems or reliability issues. That can be a big advantage over a used one. Also, the independent transmission specialists often develop a lot of their own modifications to improve reliability that you won't find in a rebuilt transmission from the dealer.

Did you actually SEE a handful of metal shavings or just go by what the mechanic said? I'm hoping he was exaggerating for effect. Small metal flakes on his fingertip after wiping it through the pan is a major cause for concern. A "handful" of shavings should cause severe shudders and vibration if the car even moves at all. If you're going only by what you were told, I wonder if the wear is really that bad. I think you would be smart to stop in first at a transmission shop and describe the problem to them. Anything you can describe, you can be sure they've heard before. They will give you some suggestions on how to solve the problem. Once bushings and other metal parts start shedding material, the wear accelerates and chews up other parts. If the problem is resolved right away, many of those other parts can be saved and reused. If it comes to that, many transmission shops have recently-rebuilt transmissions in stock that will cost less than replacing all the stuff that might be needed in yours.

Well, not to add insults, but in my opinion, you're right about parts and repair prices on Cadillacs, but also, GM is by far the most customer-unfriendly manufacturer. I would rather see you repair a '96 model than buy a newer one. There are just way too many unnecessary computers to do simple things, and most computers now have to be programmed to the specific car by the dealer. Only GM has that all locked up so you have to constantly be running back to the dealer for expensive repairs. Chrysler and Toyota allow any independent repair shops access to their web sites so they can work on those cars. Only Hyundai allows any shop to access their web site for free. Those companies really put their owners' interest ahead of short-term profits. GM lives on short-term profits while sacrificing repeat business. Too many people have said "never again".

Keep me updated. Hope you make out okay.

Solenoids won't cause debris in the pan. Something else is coming apart that is creating debris. It's very possible some of that debris is preventing the solenoid from opening a valve or it is blocking that valve. Replacing parts isn't going to solve that problem permanently. Debris circulating with the fluid can also chew up rubber seals. That will prevent pressure from building which can tell the shift valves it's not time yet to shift to the next higher gear.