From what I see in the manual, here's how it should look...
1 - (SS1) On | (SS2) On
2 - (SS1)Off | (SS2) On
3 - (SS1)Off | (SS2) Off
4 - (SS1) On | (SS2) Off | (3-2T/CCS) On
Overdrive will not engage because of the error from the solenoid pack.
It's kind of hard to pin-point the problem just from these charts, because the always On Failure chart and always Off Failure chart doesn't really match your findings. I would have to say though, that since the 2nd gear SS1 and SS2 solenoids are swapped (SS1 being on, meaning that you are in first gear) that you might very well just have a bad solenoid block. It would be really helpful if you could've gotten some pressure readings off the valve body and overall system pressure.
You might be able to do some searches here the Troubleshooting forums or the Tranny forums, on Valve Body, and find some information that a fellow CEGer posted a long while back. He changed his VB and Solenoid pack himself and gave a short write up. If you can't find it, let me know and maybe I can find it for ya.
