2001 Honda Accord D4 light flashing, shifting delay between

Transmission problem
2001 Honda Accord 4 cyl Two Wheel Drive Automatic 188818 km

I was driving the car and suddenly it started acting up. It would take like 4 second to shift from each gear to the next, and D4 light started to flash. I asked one of my friends to use his code reader. And it showed two codes: Incorrect gear ratio, some solenoid code. He knows some transmission guy, he said " once you see incorrect gear ratio, its time to rebuild the tranny." So he rebuilt the tranny and changed the linear solenoid. I tried to drive it after, the odometer stopped working, RPM is still working, but it still wont shift out of the first gear. Had to take it back, now he says its the speed sensor and its not communicating with the tranny. He says there is no way to check if it has gone haywire, u have to replace it. Now I am starting to think I m getting ripped off. I paid $1500 for tranny rebuilding and now he is asking another $200 for the speed sensor. My question is, did my tranny need rebuilding in the first place? If he rebuilt the tranny why the problem still persists? D4 light is still flashing.
A feedback would be deeply appreciated.