It sounds like to me the B2 piston is broken and can't apply any force to the band. This will definitely cause a slip while starting off (drive breakaway) and since half the geartrain is winging around at high speed, second applies and the tires chirp as second applies firmly. I had a broken B2 piston in my old 300D and the trans slipped in low but since the geartrain doesn't have as much mechanical advantage in higher gears, second and third were fine. The band comes off in forth. I have an ATSG manual if you want it, I can e-mail you the PDF. The piston is fairly easy to replace. Do some searches on it. Good luck. Eric.

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1984 300D, 246k, veggie, sold
1982 300SD 301k