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had the exact same thing happening to me. Drive was like 4th gear, not 1st. I had to manually shift 1-2 then 3 then drive. The fix was the two shift solenoids in the transmission. Pull the pan off and they are the one at the rear and the one on the side, not the front one, I think that's the overdrive solenoid. Easy to replace and fairly cheap ($60 ea). Worked for me.

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Q: 96 Jeep Cherokee Classic with an AW4 Auto trans wont downshift into first you have to pull it down into 12 manualy?
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