Wow! thanks for the info! I realize that I'm beginner when it comes to auto mechanics. Please forgive me if I ask silly questions.
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Sounds to me like you have a 3-speed automatic (P-R-N-D-2-1). The 4-speed electronic automatic (P-R-N-D-3-L) would have given you "limp-mode". Although you didn't state, I bet you have either a 2.5L or 3.0L engine. You didn't mention the mileage, either. You said the fluid was full, but you didn't tell us the color. Good transmission fluid should be bright red. Old and contaminated transmission fluid is brown and may smell burnt. Also, you should have checked the transmission fluid level with the engine running and transmission in P. If you didn't check it this way, the level reading was false and may be lower than you think.
A lack of reverse gear engagement indicates the front clutch is not engaging. If you manually shift the transmission, you will notice forward movement in 1, an upshift when you shift to 2, then either no upshift or neutral freewheeling after you shift up to D. Try it and let me know if I am correct.
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You are right on point it is a 4 speed (P R N D 3 L) 3.0 with 170,000 miles on it. I'm not sure what you mean by "limp mode". It simply went out on while on the High way. My wife was driving at the time. I could ask her if she noticed anything like that.
I have to say it's been more then a year since I had the tranny serviced. The fluid is light brown so I'm going to go with a filter and fluid change and see what happens from there. I have no clue on how to adjust the belts. How difficult is that? I will let you know how things go. I do not have the owners manual on this vehicle do you know what fluid would be best? Thanks again for your help.