I've said it before, and i'll say it again.
aw4's will not shift from 1st to 2nd in the 1-2 position until 4500 rpms, regardless of throttle position.
As for the down shifting, trying dropping it into 1-2 going 40-45 mph, and see what it does, you'll know real quick if it drops into 1st, but my bet is that it will shift to 2nd.