Chrysler Repair: engine shuts-off when shift out of neutral/park

Question
QUESTION: I have a '94 grand cherokee with the 5.2 v8, auto trans,and 190 k miles. The engine starts, idles fine, but when I put it  in drive or reverse it immediately dies.The tranny was rebuilt about 30k miles ago,battery is one year old, fuel pump replaced two years back, no blown fuses I can find... any ideas?

ANSWER: Hi Marc,
If the shut off is very prompt, like as if you were driving a stick shift and you let the clutch out too fast, then I would suggest the possibility that the torque converter clutch has locked up rather than being in the normal unlocked position until the vehicle is moving faster than 45 mph. Does the van seem to jump forward/backward (depending upon which gear you have selected to shift into), or does it just die gently but quickly which would suggest an engine idling weakness situation due to a poor fuel/air mixture ratio?
If the torque converter is locked up, then that would possibly be covered by the trans rebuild warranty.
Those are the two possibilities that come to my mind for what you describe. By the way, I don't have Jeep manuals for the 90's so am a bit limited in what I can specifically suggest.
Please read the PS (below) and respond to it.
Thanks,
Roland

---------- FOLLOW-UP ----------

QUESTION: Hi Roland, yes, it definately jumps when put in gear,could the torque converter be seized up due to fluid loss? I can't check it now since it's cold and also not parked on a level surface.Also,the trans. rebuild is of course past warranty, so I'm wondering if I need to get it to a tranny shop and how extensive a repair it might be

Answer
Hi Marc,
No, the torque converter lock-up is usually done by an electrical device unrelated to fluid, but I don't have the specifics about the Jeep trans that is in your '90's model. Hopefully it will be a part that can be replaced without removing the trans. Sorry to be limited about Jeeps of this vintage but only have info for '05-'07's. Did you try asking "Kevin", the other 'expert' here?
If you would do a 'thank/rate' and nominate' I would be appreciative.
Roland