This is a recent purchase for me. I didn't let it get this way hahahaha
As the title says... the fluid is barley touching the dip stick. I'm headed to the dealer after today to pick up some SPIII tranny fluid. How many quarts would be a good guess to buy based on the dip stick.
What made me look for this is the C/D lock light started blinking do the first thing I checked was this.

 

disregard I bought 5 qts at my local dealer. $7.50 a qt. same as if I would have gotten it on amazon.

 

I would venture to guess you'd need at least 2 quarts if you measured fluid with engine running. If not - a lot more...

 

Yes it was 2qts. But it didnt fix the blinking light. But more importantly. It now goes into gear every time

 

Glad your tranny behaves better now. The flashing C/D lock light is more likely related to a transfer case. There are a number of input/output and other sensors on the transfer case. Any one of those could cause the flashing light. With some work and persistence, it's possible to figure out which one is causing the problem and replace it or fix wiring.