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Originally Posted by 71Formula
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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No, if the rear servo piston is not applying the low/reverse band, you will not have reverse.
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TTS, clearly you are knowledgeable about these transmissions, but next time you have the opportunity to try it, apply 12 volts to the detent solenoid and drive the car. You will have these exact symptoms, in drive the car will not have engine braking in low or second gear. In selected low or second, it will have engine braking as the over-run bands are applied.