Tranny shifting question

[C Sean Watts]

On an '87 190 (with the 300's motor and 4 spd auto) the trans will NOTgo above 2nd gear. What we've checked / done so far:

Trans filter and fluid change - no leaks or metal in the pan.
Checked the modulator seems to not be leaking
ditto modulator vacuum lines
Checked shifter linkage bushings

1st to 2nd is crisp NO slip, but then it pulls all the way to redline.
Same condition from "D" or all the way down and manually shifted.
any ideas?, we're STUMPED

email directly
c_sean_watts@yahoo.com