Im not sure, but using Automatic Transmission Fluid in a fork is just not a good idea! The valves and passages in a fork are extemely small and require usually a 5 weight, not 30 or 40 weight oil! The internals of your fork may damage quickly with that oil. I think the reason that your seals went, was because when the oil was forced thru valves the oil put a lot of pressure on the seals before being able to move through. Fork oil is worth its weight in gold compared to ATF for the same job.
Also, if you have a nick in your fork tube you could get the tube replated if necessary. I dont think theres a limit to how smooth you want the inner tubes, they dont need to hold oil like a cylinder because the tubes are bathed in oil.