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The sprag (one way clutch) has gone out. They are easy transmissions to pull apart and put back together, the only tools you really need would be a pair of giant snap ring pliers and small screw press to get the retaining rings out of the center support and pull the sprag clutch out, and you could probably do it with some c clamps, I think I remember thats how I did mine on my 6L80. Getting it out of the car though would be the hardest part by far.
Power flow in first gear has to get held by the one way sprag clutch. When you are in drive an extra lo/reverse clutch comes on to hold the sprag clutch from spinning by grounding it to the case. At around 5mph or so this clutch comes off so that if you let off the gas in first gear you won't get thrown forward from the engine braking. If you put it in manual 1st gear this lo/reverse clutch stays on 100% of the time when you are in first gear. This extra lo/reverse clutch helps give it extra holding capacity so the sprag clutch dosen't have to take all the load in first gear when the torque converter is stalled up right at take off.
It should be fine to drive it just using manual first gear then shift to second or drive, but sprag clutch material may have fallen out somewhere, but I would think it would just fall to the pan.
Also by the way this is the Camaro6 forum and I'm pretty sure there is a Camaro5 forum and this technically isn't the correct place for repair type questions.
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