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I understand your frustration and I hope my advice helps. When you said the kickdown cable is quite loose, did you mean at the throttle end? It may not be returning all the way. The stop on the cable should be able to return against the cable sheath when you disconnect the cable from the throttle wheel. It does on my wagon and the car shifts fine. Your cable sounds like its binding partially. If you do find that the cable is bad, a new one is only $26 at eEuroparts.
I sincerely wish you the best of luck.
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