[V8] V8Q Transmission Shifting Issue

[SFevold]

I just had another engine put into my 1990 and now the transmission that
worked flawless before is now having issues.  Here are the symptoms:
-It's acting kind of like it's in limp mode but the display isn't lit up
like a 'normal' limp mode.
-When first starting out, the shift to 2nd is very noticeable.
-It will shift into 3rd fine, I don't think it ever shifts into 4th.
-It won't downshift, even from a dead stop.  If I want to start out in 1st,
I have to turn the car off and start it up again.
-The gear shift position does seem to do anything in regard to the forward
gears.
-The Manual, Sport, Economy selector doesn't work (it used to).

Is my TCU fried?

I just figured I'd get some input for when I take it back to my mechanic
friend (he's a retired Audi mechanic but He appears to be a little stumped).

Thanks,
Steve
Bellevue, WA