OK, start the car up and put it into gear, it drives fine, after a few minutes if you shift outta D or come to a stop, the trans no longer engages at all, not a simulated slip like W mode. Its not flashing the "W" button light, but the upshift arrow is solid illuminated, as is the CEL, though I have not had a chance to tow it in to be scanned. If I put it in park kill the engine and restart, it will drive again for a few moments, then the whole deal starts again. Any ideas?

Sounds like the PNP sensor. With the key in pos II and the engine off, put it in R and see if the back up lights come on. If not, you need a new PNP switch. Then, key still in pos II and engine off, "row" the gear selector from R to L about a dozen times. That should move some of the crud around in the PNP box and allow you to drive.
Check the tranny fluid level as well. If the fluid is brown, it is time for a flush. The dipstick has two sides, one for cold and the other for hot fluid.

Klaus
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The 164 has a new home, all I am left with are a 95 854T and a 98 V70R :)

How many miles or KM on this transmission, and how many miles or KM since the last transmission fluid change?

not sure how many miles since last flush, but car has 140K miles on it, and the fluid doesnt look bad. Has always shifted great and ran perfect, this just started last night out of the blue. This car really only get 50-60 miles put on it a week and other than the front suspension starting to knock, its never had any issues at all

Your noisy front suspension is probably the sway bar end links or a strut cover boot holder that came loose. Just turn the wheel to one side or the other, reach behind the wheel grabbing the end link and shake it. If it moves, replace them with a pair from IPD.
For the other problem, reach up to the top of the spring and using fingers, check for anything loose.

Did you row the shifter yet?

Klaus
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The 164 has a new home, all I am left with are a 95 854T and a 98 V70R :)

well, we got it scanned with a generic OBD-II reader and it came up with two codes, P0734 for incorrect gear 4 ratio and P0740 torque converter clutch solenoid circuit. Anyone have any ideas of what I'm looking at based off this?

That explains a lot. The torque converter is not engaging if the solenoid is short circuited. Not a very difficult procedure to replace. But I wonder if the wiring didn't go bad.

Klaus
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The 164 has a new home, all I am left with are a 95 854T and a 98 V70R :)

OK, am I correct in thinking then that it isnt the tq converter its self that has failed, but a circuit or solenoid that is causing it to act normal right after startup then disengage afterwards? The car grabs hard and will actually chirp the tires at first after startup if I floor it, but after that it just lets go. Does it no matter how I get on the gas, even does it at the same amount of time if I just let it idle along in gear. Would the gear 4 code be the PNP switch?

The car uses that solenoid to disengage the torque converter when the car is stopped, or is to engage it when the car is moving? Regardless, it is your problem.

The other error is probably not related. This is common and happens when shifting gears too quickly or some other anominally happens. Which is why I always clear all of my codes at oil change time.

Klaus
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The 164 has a new home, all I am left with are a 95 854T and a 98 V70R :)