97 240 auto trans problem

[97nas14]

i have just installed a new ka motor and ran the car. i noticed i have a air pocket in the cooling system...no big dealbut the transshifts funny. at light throttle it revs to 7k rpms and then shifts, under hard throttle it shifts fine.fluid level is fine. plus the overdrive button doesn't work but it never had.............is my transmission done for???????????