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used transmission and personal transmission questions...

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my buddy has a used transmission out of his 96 with a shift kit. he bought it with it and he doesnt know what its built with or anything. he says it works great for him before he did the manual swap. im just wondering, how much power can a auto with a shift kit handle over stock? im looking to build mine before i mess with my engine, and wanted to ask you guys. he wants 600$ but ill get it for 400$.

now my transmission.
when i start up in the morning or any other time, the first couple shifts out of first really shake the truck backward and forward. what is this? does it about 3 or 4 times before it goes into second. as far as i know its stock, has a lockup switch, and the motor has been turned up a little bc it smokes. i want to know if this is a bad transmission or possibly a mount, and will servicing the trans fix it? thanks in advance. id love to fix this tranny and buy the upgraded one and sell mine for 300$ or so and get some $ back for rust repair.

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