Thanks for the suggestions, they definately gave us a lot of variables to tinker around with on these cars.
I finally found the ATSG manual that came with the car and low and behold my issue is listed under Trouble Shooting...
Complaint:
2nd speed slips or transmission shifts from 1st to 3rd.
Cause/Remedy:
1. Check contol slide B1 for easy operation and exchange shift valve housing, if required.
2. Remove and install brake band piston B1, check lip sealing ring and renew, if required.
3. Renew brake band B1 and thrust body for B1.
NEW QUESTION: Can any of the above be done with the transmission still in the vehicle? I'm guessing #3 can't but what about 1 and 2?
Thanks,
Mike