So, sometimes when I first drive the car in the morning, I put it into drive and the car barely moves forward. I give it gas and the engine revs much higher than it normally would to go accelerate that much. It shifts fine into second. And after it'* been warmed up, this condition goes completely away.
I know this is bad. Any thoughts, comments or suggestions(besides rebuild/get used)?

Not really alot, I had mine flushed when it started doing that, it made it like another week, but it wasn't any better.
She sounds like its done to me.

Sounds like it'* time to do the rebuild. Sorry to say.

I've been doing a little research and I found that the only thing that changes between the OD 1st and OD 2nd in terms of fluid flow is 1 solenoid. This solenoid activates the 1-2 shift acculumator and applies the 2nd gear clutches.
While I'd still have to take the side cover off, and the pump cover, I don't think I would actually have to pull the valve body off to change the solenoid. Here it is right here:

I'm not saying I'm going to jump and do this, just putting it out there.

If you have the transmission already out of the vehicle, I would definately have the tranny rebuilt! This will save you a headache down the road. Even if you don't know how to rebuild the transmission, take it to a transmission shop and tell them your an independent repair show and ask them how much its going to be for a bench job if you provide the parts. I've done this several times with my cars, and it ended up costing me like $200.00 for the bench job. I've never had a bad experience with any of the shops I've used!

You have done much grasshopper. If you are up to it and aim for success you may have that. I'd be afraid of it.

Trans worked fine yesterday and today.