It pretty much only does these things when it's cold, but I've never had one do this before. It will take off, and then when it goes to shift, it will actually act like it's in neutral. If you keep your foot on the gas, it'll sometimes slowly slip back into gear, and other times it'll bang into gear. It also sometimes seems like it starts out in 2wd, and the front tires will spin when you're leaving an intersection, and then the rear wheels often engage hard. It has no torque bind at all, and shifts great otherwise. Just curious what everyone's thoughts were.

I'd check the linkage adjustment.

 

Does it do it if you manually shift it, say 1st, 2nd, 3rd.  Try leaving it in 3rd.

It doesn't do it when shifting manually.

And as I said, it doesn't do it after it warms up.

I'd try adjusting the Inhibit SW/shift cable.  

 

I have an Outback that has a Forester trans installed that is doing the drop into N when you get on the gas hard.  Drive easy and it works fine.  Shift manually and it works fine.

Any instructions on how to do that? I do have to add, that even when I start out easy, it'll take off fine, and as soon as it goes to shift into 2nd, it acts like it's in neutral.

Sounds like its low on fluid. Have you checked the fluid level recently?

The 2 things that I've found contribute to slippage and delayed engagement issues like this in the 99-01 trans are the input shaft o-ring(on main input shaft), and the brake band O-ring(between valve body and band)

 

The first is pretty easy to change if the engine/trans are seperated.

 

Teh second requires removal of the pan, and hte valve body.  The valve body on these phase II trans are all self contained and come off in one piece.....so it's less intimidating than it seems.  Still messy though.

Is it something that I need to worry about? Or can I just deal with it? I'm fine with dealing with it as long as it's not going to fail all together.

Is it something that I need to worry about? Or can I just deal with it? I'm fine with dealing with it as long as it's not going to fail all together.

Bump

As a few have recommended, you may want to:

Check the fluid level

Change the fluid and check for metal in the fluid

Change the external filter

 

I doubt it will just fail without getting worst first.  Shift manually to prevent the hard shocks to the trans and driveline.