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Erratic Shifting

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Hi All, 

New here as I just inherited my brothers old I4 4 speed 626, still going strong with 534,000kms on it :thumbsup:

When I first got the car off him, I drove it home, 2 hours on the highway and thought it was odd that it was sitting 4,000rpm on the freeway. 

Some investigation last night showed that in 'D' it will stay stuck in 3rd gear and won't really do anything else. We also discovered that the 'L (1)' position on the shifter allows the car to shift from first to second and shifting it from that into '(S) 2' position allows it to go into third and then fourth. If you put it back in drive, it will go bezerk and downshift into 3rd after a moment. 

We tried turning the hold function on and off but it has no affect on what happens. Has anyone ever heard or something weird like this happening or know what might be causing it? 

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