Jeep Liberty Malfunction Indicator Light?

The Malfunction Indicator Light has been coming on intermittently in my 2002 Jeep Liberty. Recently, I was leaving for work and noticed really bad acceleration, to the point where I waited for the biggest gap in cars ever to pull out of my neighborhood. On the freeway, my RPMs were running really high, so I called the dealership for a diagnostic.

I went in today and had a diagnostic done, which came up with code "P-0846 2C Pressure Switch Sense" listed on the paperwork I received. Most of what they said to me was kind of greek, but the gist of it was that there's something wrong with the transmission and the shifting mechanism, and that it's going to be $700 or so to fix. They offered to make the repair today, but I wasn't willing to make the decision without additional information and possibly a second opinion/estimate.

Has anyone else experienced this, know what that code means, and had it repaired with less expense? When the light is on, it's on all the time. Then sometimes the ... more.

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