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Greetings Joe,
Your confusion is understandable.
The range selector lever holds the range/extent of progressive gear selection, rather than selecting low or any individual gear. As you well know, unless manual is selected, the transmission will start out in low and then move in progression as far as the ratio chosen, e.g. third speed for city use.
When set in first the lever sets the inhibitor switch which transmits a range signal to the TCU, whereby solenoids 1 & 2 are energised and the ratio is held. The operation involves both manual lever movement and electrical signals.
Cheers, Trevor.
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Trevor, New Zealand.
As a child, on cold mornings I gladly stood in cowpats to warm my bare feet, but I detest bull$hit! 
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