After doing some reading on how an auto works I'm still a little confused. The only time I actually saw a torque converter was a few years ago and if I remember correctly it just slid on the splined input shaft.

So when they talk about the fluid in the TQ are they talking about it's own self contained fluid or does it use the transmission fluid somehow?

Tx

 

This should answer some of your questions.
How Stuff Works

 

This is a better explaination

http://www.familycar.com/transmission.htm

The short answer is that a modern torque converter uses hydraulic coupling using two fans (impeller and turbine) and a mechanical clutch like a standard transmission to transfer power. Most modern performance TCs, like in the Z, are really a combination of the standard hydraulic TC and a mechanical MT. The Z uses full hydraulic transfer in 1st and 2nd, a partial mechanical lock-up in 3rd and full mechanical lock-up in 4th and 5th.

Instead of disconnecting the engine shaft and drive shaft like in a standard MT to change gears an AT with a TC is allowed to spin at different speeds without disconnecting because the fluid will allow the two different sides to slip and spin at different speeds. Eventually, both sides will match and couple. This has both advantages and disadvantages. The most obvious advantage is that you don't have have to disengage the engine from the drivetrain. (Continuous powerflow) The second not so obvious advantage is torque multiplication when uncoupled. (Ability to virtually gear down and create more torque than the engine is outputting without changing gears. Velocity to torque conversion is how it got it's name) One of the disadvantages of the TC is that it isn't as efficient as a standard MT. To get around this disadvantage most modern TC uses what is called a lock-up clutch. This clutch will mechanically lock the fans together, bypassing the fluid coupling (no fluid loss), making it just like a fixed connection in an MT. Another disadvantage of the TC that a lot of velocity is wasted while the TC is torque multiplying. To get around this, a modern performance TC uses what's called a stator and re-directs the wasted fluid energy back into the impeller to be re-accelerated and create more power. (hydraulic turbocharging from the impeller to the turbine)

 

Good grief!

Not easy to visualize. But it looks like it has it's own captive fluiid.

Tx

 

There is two fluid areas in the 5AT. One that operates the clutch and the gears through the valve body and one that powers the driveshaft in the actual torque converter.