I am a new owner of a 1999 Discovery 1, which I intend to use for legal off-roading and around town, so I'm not familar with the normal operation of the automatic transmission. It appears to shift normal from 1st gear to drive, but when I left off the throttle to coast, it immediatley down shift and the engine RPM rises as high as 3000 RPM. Then as soon as I add throttle it upshifts. Is this normal? Any thoughts?

 

My 97 does not do that. The whole shop manual set is called the RAVE, and is a free download below. Includes diagnostics of transmission charts.