SlideStatus

So a couple weeks ago i bought an s14 in hopes of turning it into a decent daily.
When i got it the guy i bought it from told me about the transmission saying it was bad.. yatta yatta yatta. I decided to pick it up anyways for the price and now i've got to messing with the transmission some..

I've checked the transmission fluid and it's at proper level and light in color.
When shifted into reverse it idles a little lower than in park but engages and will drive backwards, But, When i try to engage it in drive it just free revs and will go all the way up easily not catching or anything.. it does the same thing in every forward moving gear 1 and 2 also free rev without catching.

This is the first automatic car i've ever owned so i have no experience on automatic transmissions at all or i wouldn't ask.. I've searched on here and google and found no results that have the same symptoms as this.

Any ideas?