I decided not to do anything until it was diagnosed from a transmission shop. I figured they had the scan tools to find the exact problem. Although after talking to the mechanic it didn't sound like he scanned anything, rather just drove it and figures this is my problem.

It's funny you bring up the used tranny option from craigslist. I actually came across the mechanic that does rebuilds for $600 while searching craigs for a used tranny. The cheapest used one I could find in my area was $400, so I figure paying an extra couple hundred to have mine refreshed is worth it.

You got me thinking on the solenoids though...The guy seemed positive it had a broken band