Two problems related to transmission fluid leaking have been reported for the 1997 Chevrolet Blazer. The most recently reported issues are listed below.
Transmission has shifted hard from 1st to 2nd since I bought the vehicle used 10/7/03 also get intermittent check engine light used car dealer coded out to trans component slippage but didn't know what to do on 01/16/04 was on extended trip and transmission failed completely - rpms started to climb so pulled over to shoulder of road - kept slipping gears - finally lost all forward motion. On stopping and checking found dip stick showed no fluid but had rust and grit on the end fluid appeared to have been leaking out of the top of the tube and there was trans fluid all over the bottom of the vehicle had the vehicle towed back to used car dealer he put in 8 qts of fluid to get it to move his mechanic said it appeared that the fluid "boiled" out of the dip stick tube but didn't know why in checking the internet it appears that these symptoms are common but unsupported by chevy on this model year of Blazer.
Transmission has rusted out due to faulty design in window wiper fluid container which leaks fulid onto transmission. The dealer stated that washer nozzle leaked on to dipstick tube of the transmission.