Sounds like the pucks in the motor have disintegrated. They'll give enough 'traction' to drag it up and down, but then they keep spinning until the controller shuts it down.
Pull out the motor, take it apart - replace the pucks. Fiero Store has 'em, or if you're really on a budget (too cheap? heh), take a large hot glue gun stick, and slice it into little discs about 1/2" thick. They're just the right size.
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87/88 V6 5spd "FormulaGT" Turbo
85 Bright red GT 4spd (with matching 1:18 model!)
86 SE (custom body in progress)
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http://www.fieroclub.com
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