727 Won't hold 1st

I have a torquflite 727 that will not hold first or kickdown. It shifts out of 1st way too early (like 3k or 3.5k at WOT). Then it will shift into 3rd around 4.5K at WOT.
The kickdown is nonexistent, I've adjusted it to the point that it it starts pulling the throttle back and still doesn't kickdown.
Here's the part that I'm really confused about...
I can shift it into all positions, P through 1. They all act as they should until you get to "2". "3" acts like its should, "2" acts like 3 should and then "1" acts like 2 should. I've checked the shift linkage on the transmission and it is indeed reaching all positions. I thought maybe something went wrong with the governor but I'm not sure. Help please.