Saved an '87 300e 2.6 from the boneyard to pursue my illusion of grandeur as a weekend 'DIY' warrior. Her body has some dings, mouldings are complete and interior are in decent condition. Changed the front flex disk and cat. converter.
B-U-T her tranny slips out of gear in 2nd to 3rd. Once in 3rd, it acts pretty normal and once in 4th, glides at normal highway speed. Reverse works. She has 175K and ready for a rebuilding project. Found a bench jobber who has a rebuilt 722.358 and insist that it will fit her 2.6 engine. Any and all are welcome for this inquiring 'bonehead' mind to re:torque or re:screw the plan to pursue the illusion.
P.S. With all due respect, it is a learning experience to read, react and ready to learn from the best. Bn...

how does it shift with the vacuum modulator disconnected? have you tried a service yet?

Thanks Ray for your prompt reply. An Independent shop owner test her and willing to check the B2 Piston. I will relay your suggestion and will post the cause & effect. Bn...