You may be experiencing a limp home mode. It can damage the trans. /QUOTE]
I do not agree with this statement at all.
When the limp mode engages, you lose 1 and 2 automatically, but still have 1 and 2 manually. It will not come back (to normal) until you toggle the key on-off... the limp mode is a soft code, once set, it can only be reset by cycling the key... it does not come and go driving down the road.
And the limp mode is designed to protect the transmission, I drove several thousand miles with my 99's transmission in limp mode WITH NO DAMAGE. The govern pressure sender was bad... I had no choice... still got 80k on that transmission before I traded.
I believe the only reason you would find a damaged transmission with limp mode is if the transmission was toast and it caused the limp mode to begin with...
Another thing to check is the filter to make sure it isn't loose causing you to suck air... been there. Or even a plugged filter. Also, I had a transmission with the same symptoms as yours, DC replaced it... not saying it was actually defective since that was DC protocal at the time.
steved