Toyota Repair: 1998 Camry P1705, toyota camry v6, transmission slippage

Question
Hello Ted,
I own a 1998 Toyota Camry V6 Automatic.  The check engine light came on intermittently (whenever I hit a bump) starting in Feb 2007 indicating a code P1705.  Recently the check engine light came on and will not turn off.  In a few instances during this period, when I tried to accelerate from a stop in wet conditions (especially into a turn) my vehicle would not accelerate smoothly, instead it lurched forward in rapid steps for a few seconds until the "trac off" light comes on.  Then it would drive smooth again.  After a few days of driving, the check engine light and the trac off light would go out simultaneously, but the check engine light comes back on after a few miles of driving.  I tried changing out the transmission revolution sensor (toyota part no. 89413-0802) and disconnected the negative terminal on my battery to clear the codes, but the check engine light still comes on with code P1705.  Is it possible that my transmission is bad?  Thank you.

Answer
I think it's time to consult a toyota dealer, this is too involved for me to help with, you are on the right track replacing the revolution sensor but there is another problem, I have checked to see if there are any service bulletins from toyota regarding this code but found none. It could be a transmission problem, the sensor picks up the revolutions from one of the clutch drums inside the transmission, if there is transmission slippage it can cause the problem, on the other hand it could also be a problem with the computer(ECM)or a wiring problem, like I said, it is a little bit involved and without me being able to actually do some step by step diagnosing it's kind of hard to help. The only past experience I have with this same code was with a 2005 Highlander model and it turned out, after replacing the speed sensor, that the transmission had to be replaced.