I got 1st and 3rd all the time, no 2nd. In fact, I had to thromp the gas so hard in 1st that it would roll through 2nd and straight to 3rd just to get around the no 2nd gear thing.
Here's some more pics. Servo valves look good as you can see in the pictures. I was trying to knock out the clutch (??) and all the bearings and springs fell out before I could take a picture of it. is that bad?? I hope not. But the bearings look smooth, I have to inspect all of them, but most look fine. The book says to use a knockdown punch to get the assembly out of the case, but I don't have one, so I've tried using a socket that is slightly smaller than the pin size and hitting the socket, but the assembly hasn't budged. Any ideas?