I've recently been experiencing problems with the transmission on my '98 ML. It started one day right after I started the truck. When I went to put it into reverse, I could feel a much greater shock to the driveline than normal, shifting to Drive, I felt the same big shock. Shortly after this the "Check Engine" light came on. After the truck warmed up a bit, I tried shifting back and forth and the big shock was gone, but the "check engine" light strayed on despite restarting vehicle. A quick read with an OBDII scanner showed a P0700 transmission fault code. After reseting, the light came on again the next day.
After resetting a second time, the light no longer comes on, but now sometimes when the car is slightly warm from sitting a while after a drive 0 about an hour, I find that the transmission seems to be starting out in second gear in reverse and drive. This has happened twice today. After a little while, it returns to the normal first gear starts. If anyone could help me diagnose this, I would really appreciate it - Gilly?

__________________
-98 Polar white ML320 - M1 Package, Bilstein Shocks, H&R Rear Lowering springs, monochrome paint scheme (like MY2000+ ML's), ML430 wheels and tires, MY2002+ halogen headlights