Transaxle Code 22

I have a 94 SC1 Automatic. About 190000 KMs on it (about 130K miles). I've
been experiencing a delay going into reverse for about two years, on and
off. Now the SES light is going on, and transaxle code 22 is coming on - "no
second gear". Indeed, there is harsh shifting from first to second gear now.
This shifting problem seemed to happen suddenly. But I heard that second
gear and the reverse gear are related. I've yet to be "stuck" in first gear,
as some people say, but the shift occurs at about 4500 RPM now. And - I can
rarely even get into reverse, I usually have to push the car now.

What do you think I am looking at here...a complete rebuild? Valve body? One
of those "nut" problems I've been reading about on the group? I don't know
much about this stuff, but would like to get informed before I decide what
to do.

Please, any help would be appreciated. I'd like I know something about this
before I bring it into Saturn, so they don't ding me. They already got me
for $550CDN on gasket replacements this year, and replaced the engine for
$2000CDN last year. Do you think it's an OK idea to pay for Saturn's
diagnostic fees, and then take that information to other mechanics like Mr.
Transmission to see if they can match the price?

Please copy to email, and thanks so much!