Freelander 2001 automatic problem

[Samlander]

I have just purchased a 2001 Freelander auto V6 in what appeared to be excellent condition and it went well for 2 weeks:). Now it seems that the gearbox (local mechanic diagnosis) needs replacing ($5K):(. It only goes from 1st to 2nd. It has only done 160K and I am wondering :confused: if there is anything else I should check first before it goes to the wreckers. It is now unregistered and such a waste of resources.

[woko]

Is there any other symptoms other that only changes from 1st to 2nd.
Does it flare between these gears?
Does it have harsh changes between these gears?
Has the fluid level been checked?
Does F4 flash on the dash at anytime?
Here's a document on how to check the sensors and solenoids- http://www.drivehq.com/web/jfenley/Transmission_Pin-out_JF506E.pdf