Here's some suggestions I made to another member a little over a year ago...
Main Control*Bolts out of torque specification - Adjust bolts to specification.
*Gasket leaks - Inspect for damage. Repair as necessary.
* 2 - 4 accumulator valve, 3 - 2 control valve (also harsh 3 - 4 shift) stuck, damaged or misassembled - Inspect for damage. Repair as necessary.
*Separator plates damaged - Inspect for damage. Repair as necessary.
*Hydraulic passages damaged - Inspect for damage. Repair as necessary.
Pump Assembly*Bolts out of torque specification - Adjust bolts to specification
*Gasket damaged - Inspect for damage. Repair necessary
*Pump support seal rings No.3 or No.4 damaged - Inspect for damage. Repair necessary
*Porosity/cross leaks - Inspect for damage. Repair necessary
INT/OD Band and Servo Assembly*Cushion return springs damaged - Inspect for damage. Repair as necessary.
*INT/OD band damaged, worn - Inspect for damage. Repair as necessary.
*INT/OD band and/or reverse clutch drum assembly worn damaged or misassembled - Inspect for damage. Repair as necessary.
Forward Clutch Assembly*Seals damaged - Inspect for damage. Repair as necessary.
*Return spring damaged - Inspect for damage. Repair as necessary.
*Friction elements damaged - Inspect for damage. Repair as necessary.
Case *Band anchor area damaged - Inspect for damage. If damaged, install a new cas... cuts off here and not sure about the rest.
This is just a list of hydrualic related issues that should be checked and/or addressed when troubleshooting harsh 1-2 engaugments.
Electrical is a bit smaller...
Powertrain Control System*Electrical inputs/outputs, vehicle wiring harnesses, powertrain control module, EPC solenoids, transmission fluid temperature (TFT) sensor, vehicle speed sensor, TSS, throttle position sensor, mass air flow sensor, TCC solenoid, Gearshift Position Sensor - It then leads you to pin point test to perform. Most of which, you have to have a Scan Tool and a special cable.
From the same thread...P1744 - Excessive slipe detected during full TCC engagment.
What is happening is that the Torque Convertor will not engage/lock (like what hetfield said). This could be a problem with the valve body or the TC itself.
The reason you might be having the harsh shifts after an amount of travel is because the tranny is overheating due to the fact that the TC will not lock. The reason it would over heat is because of the high pressure that must be used to actually lock the TC. That back pressure is not a good healthy thing!!
Is there a way to fix this without dropping the tranny? I doubt it. You could try an additive, but most likely you have mechanical damage to the TC or the piston in the valve body that controls ATF flow to the TC.
-----------------------------------------------------------
I will sum all this up for you a little more though... Given the past experience of several CEGer's, we have found that this problem can be resolved with a new valve body and TC assembly. I would suggest contacting
http://www.axiom.com/ (you will have to us their website to locate a local distributer, they do not take orders over the internet) to obtain your vavle body and you can get a good rebuilt TC from most any parts supply stores. IIRC, O'Rielys carrys this. The valve body is in the neighborhood of $250 and the TC is about $100.