1988 Cherokee Laredo transmission will not pull out in drive but I can pull out in 1/2 shift up 3 to d and it’s fine. No metal shavings in pan when changed filter and fluid. It sat for 2 years. It’s leaking a little trans fluid as well. What could it be?

 

No power to the trans computer will cause this. On an 88, there is a fuse wrapped up in the harness near the computer. http://cruiser54.com/?p=58 has a good picture of it. If that's good, you need to start troubleshooting with a multi-meter, verifying that the computer has power, ground, and the resistance of the solenoids. The other likely cause is wiring damage or the #1 solenoid is failing. The solenoids can be replaced by dropping the pan and filter. In fact, you probably already noticed them when you did the filter (really just a mesh screen).