A bad trans won't make the engine stall. Sounds like you have two different issues at work here.
Sorry, I misread your original post. I didn't realize it was dying when going into gear. Usually though, I would think you'd feel the converter going bad. Was it shifting hard or not shifting leading up to any of this? Have you plugged in a code reader to see if that can tell you anything? Very well might be a bad converter but I'd suggest you check for any codes before dropping that kind of money on it. My $.02 anyway.