Hi,
Its a long thread and I really lost the trail.
Anyway to solve the problem, the first step is to understand it and then take the necessary measures. All I understand is that your vehicle is displaying a trouble code which translates into Torque Converter lock up solenoid problem. To solve this problem I have seen some solutions given here by members in order to help you. Unfortunately, while mostly these are good suggestions but not specific to your problem. I will try to be more specific with regard to your issue.
Your Toyota Corolla is equipped with an ECT ( Electronic Controlled Transmission). Compared to a conventional Automatic transmission an ECT shifts the gears by electronically operating solenoid valves installed on the transmission. As you are aware automatic transmissions couple the engine utilising a coupling known as Torque Converter. Being a fluid coupling it has a tendency of easy slippage which is necessary for changing gears. This slippage is the reason conventional automatic transmissions consume more fuel compared to manual transmission. Good thing for us, an ECT has a locking mechanism that prevents slippage by locking the Torque Converter. This takes place after your car is shifted into top gear and is roughly at 70 KPH and above. As long as you are driving in city at lower speed a malfunction of lock up will not affect any performance. The malfunction will only cause a higher fuel consumption while on the highway. Hope you understand your cars problem now. Next, what is wrong and how it can be fixed.
It is obvious that the solenoid enabling the lock up is not working properly and there could only be three reasons for this.
1. the solenoid is burnt out and the solution is replacement.
2. The wire harness connector is dirty and not making a good contact, the solution is cleaning it using a contact cleaner.
3. The wires between the transmission and ECU are broken somewhere (possible nibble by rats or pulled and broken due to some other reasons). Solution is check continuity and repair the damaged wire.
While the solutions appear simple but all of them require lot of meticulous work and good understanding of the electrical system. Our everyday mistry and electricians cannot perform these jobs as they cannot read electrical diagrams. I would suggest continue using your car in town and take it to a Toyota Dealership in any major city.
