I have a 96 Dodge diesel 3500 that will choke off in first gear sometimes. It feels just like the converter tries to lock up. The other day it started to do it in town in third gear. When it happens it will crank right back up and be OK. This problem just started after I replaced the gov. press. sensor and the transducer to fix the problem with it hanging in first gear when I would start off first thing after just being started. I still have this problem also, but not as bad. Can anyone help me please.

Sounds like your front band dude.
Try adjusting it, and if that dont do it, you'll need to drop the valve body and take a look at the band. It might have no friction material left.

This is my experience...twice.

When the trans is cold there will be more clearance in the front band so it might not grab and give you second. When it warms up there might be enough to hold the drum.

Might be an adjustment, but most of the time it's already too far gone.

I'm no trans expert like a few I know of on here, so wait for second opinions. All I'm saying is that in both cases it was that damned front band, and I got governor codes as an indication.

In my opinion, that governor solenoid and sensor was the most ignorant thing chrysler ever did.

It does not flair up on the one two shift like a bad band. It seems to be eletrical. I drove it 30 mi. today and it worked fine. It never has a problem once it is going 45 mph+. When it messes up it is like you slam on the brakes. Two different times it did it when I first started it and backed up, stopped, and then as soon as I put it in drive it just shook hard and stalled.

...Fwiw, I've had my 96 3500 for ~8 months, & its had that delayed 1-2 shift after "every" start-up for as far back as I can remember. Then it started hunting in & out of lockup & OD. A friend of mine said to check the Speed Sensor. I took it to another friends repair shop & had it scanned, & it showed up Speed Sensor. Problem solved so far.
...So, you might have it scanned first.

Thanks for the info. I have not hooked the scanner to it yet because the CEL is not on, but it still may have some codes. The speed sensor is so easy to replace and cheap so I might just try one anyways. It is funny that I never had this problem until I put the new sensors in the vavle body.

Two things come to mind to me from how you describe it. Either the lock-up is coming on in 1st which would feel like putting a manual trans in high gear at such a low speed. The other is a 2 gear applied fight or in other words 2 gears applying at the same time. Does it make the eng stall right away and feel like you slammed on the brakes ?? Ron