I was wondering if the shift solenoid is located inside or outside of the transmission and if anyone knew a cheap place to get one.

 

It is outside of the transmission. You would just have to remove 2 bolts and unplug it to remove it. A junkyard would be the cheapest place to find one.

#5 is the shift solenoid A + B (it is one unit).

 

so do i need one or two solenoids

 

it is pulling a 7

 

and it is a automatic

 

The solenoid unit you have to replace has both shift solenoid A and B. You can't replace just A.

If you have a volt meter, you can unplug the connector. Test the resistance to ground (valve cover bolt works) on each pin. The resistance on both of them should be 12-24 ohms.

You can also unbolt the solenoid and clean the solenoid and the screen in the gasket with throttle body cleaner. If crud builds up in there, it could clog the solenoid and not let it work properly. I am not sure if that would trip the D4 light, but it is worth a shot.