So here is the explanation I got from the mechanic.
After not finding anything wrong with the tranny he put it back together and took it for a more thorough road test. He says there is no compression (engine brake) in first, but 2nd does have compression when manually shifted down. He explained 2nd gear is acting normal, but first gear is not. He's pretty sure the rear servo piston applied pin (or rod) is too short which does not apply enough pressure on the rear band. He says this is caused from how the new rear band fits - some of them have a slightly different shape.
He performed pressure tests on the transmission and everything is good. He said the transmission is 'functioning' perfectly other then the problem mentioned above with the rear band/servo.
Does this sound resonable?
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