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I had a car with a similar problem shifting from 1-2. The kickdown cable was not my problem either. I ended up installing a used transmission from a junkyard ($200). Problem solved. For fun I disassembled the old transmission. Inside the valve body, I found a broken spring. I'm guessing that was the problem.
If you can rule out the kick-down cable, fluid level, and shifter linkage (i.e. make sure it is really in 'D', not halfway between 'D' and 'N') as potential problems, then the only thing left that could possibly have an effect on shifting is the valve body. It can be rebuilt, but if it were my car I would just install a used unit.
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Matt L. -- Cary, NC -- '91 740 wagon
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