Saturn Repair: trans. question, service engine soon light, extended warranty


Question
i have a '99 SL2.  every couple of months or so, the "service engine soon" light comes on.  when i get the codes checked it says the car is missing first gear.  i guess sometimes i can feel it when i'm moving off from a stop sign/red light.  the missing first gear feeling only happens after the light comes on though.  within a couple of hours, the light comes off and the car is back to normal.  

every time i take it to saturn, they can't identify whether its the valve body or another component whose name escapes me right now.  i'm hesitant to take it somewhere else and have them replace something that might not be the cause.  if the problem occurs every couple months, should i be looking to replace anything?

also, i'm looking into an extended warranty from continental warranty.  are these worth it?  i've had like 1 or 2 breakdowns the past year.  the warranty will cost close to $2000 for 3 year 36000 coverage.  the wording of the contract is a bit suspect.  Do you have any experience with extended warranty providers?  i don't want to be paying for an extended warranty and have them not cover a major repair.

Answer
Hi Lance,
  FIrst I have to let you know that I don't have any experience with the 1999-2001 model.  It is a major update of the 1991-1998 model engine and doen't have much in common with the old ones.  So, I don't know a lot about it.  Second, I am not a tranny guy...other than the basics.
What it sound like to me is that the Trans is having a solenoid problem...that trans uses Solenoids to engage the various gears and they, like any solenoid operated trans can temporarily stop responding to the computer and there is your Check Engine Light coming on.  I don't know what you can do about it but I am not surprized that Saturn Didn't know...it is a hard problem to diagnose.
I hope all works out OK with it.
Again, Sorry I couldn't be more helpful.