Second Gear comes on from front band being applied. If you have no second gear without letting off, it means your band is so loose that when the band applys and trys to stop the drum, it can't squeeze enough to stop it. Loose adjustment.
BUT!! When it gets too loose, it can fall off and obstruct the rooster comb, preventing you from putting it into park.
Same thing happened to me on my 99.
If the band is not broken, easy fix. Drop the Valve body and put the adjusters back in place and do the adjustment. Reassemble, should be good to go.