Re: Transmission problem.
sounds like a valve body issue as mentioned above, since you say it grabs 1st gear when you move the shifter to 2. Personally I would continue the way you are until it craps out completely. its not really any cheaper to fix an automatic trans when its just a little screwed up then when its completely toasted. Just a personal opinion, but i've always treated automatics kinda like disposable parts. Just seems a waste of time and effort to rebuild one to me.
99 4x4 w/ 4.0l and 5 speed (daily driver), 89 Mustang LX 5.0 (play-toy/expirement in progress LOL), 03 Focus ZX3 (wife's car)