I wanted to ask you three questions:
1. Do you think this was a bad valve body or selenoid or can this be do to the band problem?
No way to diagnose a possible valve body issue when its missing two gears, I think the problem is due to a broken band.
2. How hard would it be to do a rebuild on the transmission myself or is there any info you can direct me to that I might be able to see how to do it?
I think you should be able to rebuild it yourself, but that will depend on your skill and your determination, many on this site has successfully rebuilt their transmissions with the info they were able find here. Check out the sticky section for information on rebuilding your transmission.
3. Lastly and most importantly. How much would you charge (or anyone out there that can do it for a great price) to do the rebuild if I got the kit (parts)? How much to do the removal, rebuild and install? Etc.
You might be able to find someone to rebuild yours as a bench job for around 1000 to 1500, total job with warranty can be around 2000 to 2800 depending. Forget bringing your own parts, that's a pain for the shop/builder, just let them do their thing.
I dont have a lot of money and its an old car but I would really like to get this fixed.
I hear that all the time.