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Most likely nothing wrong with the transmission, but sounds like a fluid/filter change might be helpful. Incidentally, if an automatic transmission started out in 2nd gear, it would engage nice and smooth (i.e. that's how other high end cars shift so smoothly when going from Park to Drive, they go into 2nd or 3rd initially, then downshift to 1st as soon as the vehicle starts moving)....that is unless you're giving it a bunch of gas causing it to jerk into gear.
You might have a dirty/carboned up idle air control valve causing idle instability and hence the inability for the ECU to manage a smooth idle.
Could also have a bad coolant temperature sensor, not the one that runs the gauge or the needle, depending on your instrument cluster, I'm talking about the one that feeds coolant temperature data to the ECU.
I'd be betting on a $100 fix (cleaning IAC, tranny fluid change, coolant temp sensor) vs. a $1,000+ fix (rebuilding the transmission).
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