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It could be an ECU issue. Toyota has a recall out to replace the ECU's on 05-08 Corollas with auto trans. Did your car have the recall done? If it's not an ECU I wouldn't panic. I dont think you would need a transmission. There are 2 possible other culprits that can be causing your issue; 1st being a bad torque converter solenoid itself, 2nd being dirty trans fliud and debris causing your solenoid to fail or stick.
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2005 Corolla LE - Impulse Red - Auto Trans - 1ZZFE - 86,000mi
2003 Echo - Auto Trans - 96,000mi. - slow as dog-dirt - I'd rather put my money in the bank than in the tank!!!!!
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