2001 X5 acts like in Neutral

[Brisshizoo]

I have been searching all of the posts and have not found anything quite like my situation. Engine will act like it is in neutral when accelerating sometimes from a stop, but not always. The engine will race above 4k. When you let off the gas, and then gently hit the gas again, you get a jerk and it feels like the tranny goes back into gear. At highway speeds, have not had any problems.

Got the trans failsafe code originally, but after resetting with code reader, I haven't seen it reappear since. I have checked the connections for the Park Neutral switch, and the gear range switch and them seem to be connected.

PLEASE HELP WITH ANYTHING YOU FEEL MAY WORK.

THANKS IN ADVANCE.