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Sounds like the sun gear is stripped in the transmission as is heats up it expands and get tighter (the sun shells are known for that and are replace when rebuild with heavier versions
A p0700 is a general tranny code you need to have a scan of the tranny to find out what is wrong it will be electrical but needs a complete scan most of the time trany shops have a free diagnostic, this should also show up the p0735 number which is the 5th gear incorrect ratio so its more than likely to be an electrical rather than a mechanical fault....hope this helps
4WD! the transfer case is not stuck in neutral is it? Fluid levels are good? Have you noticed a decrease in mileage or power prior to this problem? If no then time to take it in for service it sounds like. Transmission fluid is not consummed, so if it leaked out then you may be able to fill it up and get the leak fixed, if too late then its a rebuild on the tranny.
I have also personally seen/fixed a 4L60E that had a broken reverse servo piston,it is the piece that engages the low/reverse band under a cover in the valve body area,a piston with a band engagement pin. Anyone that has this problem can have it repaired in the vehicle,its worth checking BEFORE replacing the trans unless the fluid is burn't or there are other symptoms present. Good luck and hope this helps. keep me posted, be glad to help
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