Yeah, that's what happened to mine too at 110k miles. I had a tranny shop replace it for me. Cost me $2,000 total including a new clutch. Very painful, but its fixed.
'96 Contour SE, 130k, traded 6/19/03 for: '03 Infiniti G35 Coupe , Diamond Graphite '02 Corvette Z06, Electron Blue Pic