E36 automatic transmission problems

[Naregindustries@xxxxxxx]

I have a 1995 325i with an automatic transmission that started to act 
strangely.  When I came to a stop, the car started making all sorts of noises 
very much like the engine wanted to stall (similar to what would happen if 
one were to approach a stop while leaving a manual shift car in fifth gear).  
Then when I wanted to accelerate, the car just kept lunging until it finally 
went into the right gear.   Also, every time I hit the brake, I hear a click 
from the shifter area.

I put the shifter into "3", the click went away, as did the lunging and 
stalling.  Also, when the car is at rest and in Drive, the idle drops real 
low and become a bit unstable.  Moving the shifter to 3, 2 or 1 cures it.  In 
the city, I'm just leaving it in 3 but when I get on the freeway, 50% of the 
time it will not go into 4th unless I move the shifter closer to Neutral.  
Also, when in Drive, I cannot select the "M" button on the console.  If I 
move to 3, click on the M, move the shifter back to D, nothing happens when I 
hit the "A" button.  

Otherwise, the transmission is shifting fine but I plan to do a fluid change. 
 The controller light on the dashboard has not come on.  Everything is 
pointing to some electric problem.  Is this a transmission going bad or is it 
some switch that needs to be replaced?

Thanks in advance.

Gary Krumian

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