3 shifts is right if you think about it, since you start in 1st.
As far as the problem on getting stuck in 1st, Its the governor. They bind up and it's a fairly common problem. One way to fix it is to clean / replace and install a 35mm Weight. It's easier to get to then you think. See this link (note that you really don't HAVE to remove that transmission housing. I didn't.
http://www.explorerforum.com/forums/showthread.php?t=155582
Here's a breakdown:
- Drop drive shaft on one side, Skid Plate and Trans Crossmember.
- Remove linkage for Transfercase (if it's manual) at the transfer case via a 13mm bolt, IIRC. If it's electric, remove all connectors and mark as needed.
- Unbolt speedo gear cable and any other electronic plugs you have on your TC and mark accordingly.
- Support TC on jackstands and a jack before unbolting. Remove 5 TC bolts.
- Use a pry bar to carefully break seal and then do your best to drop the TC down or get a buddy to help you hold it steady as you raise it up to remove the stands and drop it down.
- Once that's out of the way, You can look inside and see the gov and it's two bolts. When you remove the bolts, theres a chance of the gov falling apart on you and cause you to lose some pieces. Undo the bottom bolt and hold it steady as you take out the upper bolt. Be weary of letting it fall.
- Fully inspect and clean with brake clean and a crocus cloth. Make sure you get the valve out of there and that it's moving freely under its own weight.
Then just put it all back together and torque as needed. Black RTV for the TC to Trans Gasket and red locktite for the bolts in the drive train. Then refill the transmission with fluid since you lost some when you pryed the TC and Trans apart. Make sure to use Dex III / Mercon or Mercon V (I used V)
For what it's worth, Here is a link to guys who sell the govs. If you can remove the governor 1st and then order one, allowing down time, I'd look into buying a new (technically used) governor. Buy the 35mm weight regardless of you're using the old gov or buying a new one. For eight bucks, it'll overcome any binding that may happen in the future.
http://www.wittrans.com/showfilter.aspx?Category=717&Section=119