CD4E Transmission Engages Reverse when in P,R,N,2

My 02 Ford Escape 3.0L CD4E transmission AWD/4X4 has
a transmission issue that is baffling me.

The previous owner said it worked just great but then kept
dropping to low range. He then changed the shift solenoids
thinking that was the problem. He reversed it out the shop
and left it awhile. He came back and then nothing, no gears
forward or back.

I bought it and then topped transmission up with Merc V
and now have Reverse gear. It likes Reverse so much now
that it also goes into Reverse when in Park, Neutral and 2.

Park engages just perfectly but then you can hear the
motor pull down a tad (as if a gear has been selected and
stays like that) and then it roles back and stays in gear. Neutral is the exact same symptoms, recognizes Neutral,
motor idles up and then idles down and engages reverse.
Surprisingly it will start up just fine with no lag as if it were
in gear but then engages reverse again. 2 engages reverse
every time.
Once reverse is engaged, you can shift between R,N and 2,
it stays in reverse like the other two are reverse as well.

When Drive is selected though it idles down like it should as
if it has selected D but NO forward motion, the same as
with 1.

I went and then replaced the Range switch/MLPS/Neutral
safety switch hoping it was that but to no avail.

What could the problem be? Have done extensive google
searching like crazy.

Terrence