John,

         Before you panic there are a couple of things I would do before
dropping the tranny again.

1-       Remove pan, drain fluid and completely clean valve body. Remove
each little piston and clean.

2-       While the valve body is out, remove 2nd gear brake band piston and
replace the seals on the piston.

3-       Install brake band piston while valve body is still out, to ensure
correct alignment with brake band.

4-       Look up to see if brake band piston aligns correctly.

Re install valve body and re-fill with fluid and road test.

If you want further details e-mail me off line and I can get into all the
little details. I can even send you pictures as I have a tranny apart on the
bench right now.

Good Luck.

John

P.S. You will need some sort of clamp to re-install 2nd gear brake band
piston. I use a 20" sliding wood clamp.