So I'm slowly getting rid of all the little annoying things around the car (cup holder next to the e-brake, door lock sensor/latch, leaking hoses replaced and new clamps, new struts, new control arms, regular maintenance and flushed pretty much every fluid there is in this car) and now I'm looking for something more expensive and time consuming.
Since everyone is having issues with the transmission on this V8 (c5 4.2) I figured I should look into it before it gives me a big headache.

The only thing I have noticed so far is that occasionally in the 2nd gear I feel the rpms drop about 500 without the car shifting into the next gear. This only happens in the 2nd gear and only when I'm not pressing hard down on the gas (between 2000 and 3000 rpm). Is this basically the first sign of trouble or something that can still be fixed easily before looking into more $$$?

Any advise would be greatly appreciated

Edit:
car is A6, 2002, 4.2 and has 125k miles. And yes timing belt with all the goodies has been done at 83k. Also replaced transmission fluid and differential already.

 

Are you sure it is not just the torque converter locking up?

 

I have no idea at this time which is why I threw into the room to collect some opinions and experience

Any advice to figure this one out? I checked with the vag tool already but there are no errors.

 

Interesting subject. My 00 4.2 seems to have lost reverse gear, it will work, when car is warm....but not that great....

 

this is when you know you need a rebuild.

OP: when the tranny goes you you will know. the tranny will throw a code or the PRNDS will light up.

scan the engine and tranny for codes. if none show up you have nothing to worry about. also for the problem you stated my car seems to do the same except my 2.7 does it on 2nd to 3rd and my 2.8 does it 3rd to 4th.