Honda Repair: transmission problem, pressure checks, shift indicator

Question
Having transmission problems on 1992 Accord with 160,000 miles. Car has good service records.
The automatic transmission will not shift normally. Reverse works fine but in drive it will not shift thru d1, d2, d3, d4. Seems to be stuck in d3. I can manually shift into d1 but when I manually shift up from there it will only automatically change to d3 and thats where it stays. The d4 shift indicator light on dash stays lite green no matter what position the shifter is in. Transmission has been serviced by dealer, fluid level is correct. This problem is errattic, transmission may work fine for weeks and then reoccur. The dealer tells me its probably a solenoid inside transmission or the electronic controller for the transmission and will cost $500+ to fix. Does this diagnosis and cost sound right to you?

Answer
Darrin,

This is not a common problem that you are having with your car. As a matter of fact, in my 13 years of working on Hondas, I have yet to see that problem.
It sounds like you have an electrical problem, like a selnoid, or bad computer, or maybe a wiring problem. Did the dealer tell you if the computer had stored any codes? If not, it sounds like they may be guessing. Did they run any pressure checks on the trans? How were the readings?
The best advice I can give you is get a second opinion at a HONDA dealer. Ask them if they will stand behind thier diagnosis, and how sure they are of the fault. This could be one of those situations where you spend $500 and the car is not fixed. Find someone who will stand behind thier diagnosis as much as possible. (Nobody will stand behind it 100%. It is possible that there may be more than 1 problem.)
Good luck and thanks for the question,
gene