About my Subaru:
1996 Legacy/Outback. AWD, EJ2.5L engine w/DOHC, 4EAT trans. 164,000 miles.
Backstory: Headgasket blew, as per the norm. Pulled the engine and took care of it. When we got it all together, it was making a funny noise but we couldn't figure out why, so I drove it for a couple days (about 200 miles). Then realized that the trans pan had been bent up and the noise was the pump cavitating. So we fixed the pan, changed the ATF and filter. The noise went away, but now I have NO SECOND GEAR.
Details: I can drive my car. I have to rev it up to about 4500rpm in 1st, then it shifts right into 3rd. If I use the shift lever to downshift into 2nd, it is almost like being in neutral. There is just a tiny bit of thrust, and it is jumpy.
So I guess my options are either rebuild or replace the trans.
Questions: What could be causing this (and don't say driving it for two days without fluid--I already know that)?
Does anybody have any experience rebuilding these? If so, where do I get the parts and about what do they cost?
I can get a salvage trans for $650, or a Japanese 30k for $950. The Japanese one has a different gear ratio (purported to improve freeway gas mileage) and comes with a matching rear diff. Can someone explain the gear ratio thing to me?
Any help anyone can offer me would be much appreciated. But please use small words, I'm pretty dumb mechanically. I do have three Army mechanics helping me, though, one of which is ASE Master Tech certified. Thanks.