I drained the torque converter (had a drain plug- whoo-hoo!), and removed the transmission oil pan (no drain plug- messy)
While I had the pan off, I found this weird plastic do-dad rolling around in the pan.

So, of course, I panicked.
Then I realized it was probably just a dust plug that got pushed into the pan when they installed the dip stick tube at the factory. I asked around, and I was correct. No biggie.
I seem to remember seeing one of these before years ago (also on a Ford product).

Then I removed the "1-2 shift accumulator" to upgrade it, but found out it already had the new version in there, so i put it back... and it was a pain too! Very stiff springs in there.

I added an auxiliary transmission cooler as well.

This all seems to have fixed the problem, though I didn't drive it much. If the problem comes back, we'll have to install a new torque converter I fear.

It still stalled when cold until i revved it up, then it ran fine. I think it has a bad IAC valve (Idle Air Control), also a common problem. The car has almost 98K miles on it, and is 8yrs old, so....

Update 5/22/08
Wow, just found this entry on a search. Transmission is fine still. The engine IAC valve operated or limped acceptably for a year or so after i cleaned it, then crapped out. BTW, I cleaned out that IAC back in 2006/original entry :)
It's a little electric valve on top of the engine, controlling idle air flow. Sean bought a new one when it started acting up again but never installed it. A month or so after he bought it, Vic couldn't get the car to start (cold out). 10 minutes later plus the new valve and it's been going good since.

Update 7/04/08
Trans still strong. Idle issue recurring intermittently. I again suspect the IAC though I haven't the time to inspect it. I don't trust the brand he bought. That brand has sold me many parts which failed within a year. I don't buy from them anymore. Age has its benefits.