Automatic Jetta Not Shifting Past 2nd Gear

Ok so my wife has bee ncomplaining about her 2000 Jetta for a week and I finally took it for a test run to see if I could figure out what was wrong. I immediately noticed that the Jetta was not shifting to third gear. I tried pushing it a little but all the happened was that I ran up the RMP's to 4500 going 70MPH.

We took it into our mechanic and after two days he finally got back to us with the problem. He said he thinks the problem has comething to do with the solenoid circuit or the wiring for the solenoid circuit.

Has anyone else experienced this problem with their Jetta? I'm trying to figure out if our extended warranty will cover this problem since it is electrical.

2.0L have lots of issues with the valve body on them. Its a 800$ part and requires replacement of the fluid, filter, gasket and some other parts. I would take it to a VW dealer since you have an extended warranty.

im having the same issue twice what parts do i need?