Sucks man, sorry to hear...I taught myself how to rebuild transmissions when the same thing happened to me when I was a teenager. Do you have a scanner capable of pulling/reading transmission-related DTCs?
Neutral in first could definitely be the sprag beginning to slip. I replace those each and every rebuild w/a GM AC Delco sprag assembly (Sonnax also makes a rebuild kit for them but I've never used it) - the assembly is around $125.00, not $500. I also replace the snap ring holding that spring in position on the back side of the center support on each overhaul (wonder if that was done at all).
If the TEHCM's fluid pressure switches are the problem, you're looking at TFP 1 as the possible culprit. If it's intermittently failing then you'll get a 'false neutral' condition in first gear followed by the transmission 'slamming' into gear. As
@swathdiver mentioned, the diaphragms can sometimes either brake or get clogged up, impeding their ability to communicate information needed to control the transmission and they can be replaced on the bench w/the TEHCM out. Transgo sells a seals and diaphragm kit for those transmissions. The TEHCM should have been replaced with a compatable OEM TEHCM replacement unit.
Swapping in a Salvage Yard transmission:
You MUST verify that the TEHCM part number matches the part number on your TEHCM or have the TEHCM in the replacement 6L80 reprogrammed to match your vehicle's OS. If you don't do this, the replacement trans will never work right. You'll then need to do a fast adapt relearn to re-set the adapts to factory default before attempting to drive it. Go to a reputable salvage yard in your area if you're going to go this route - make sure you have a warranty so you can bring it back if it doesn't work.
You can check out my 6L80 Information thread (link in my signature) for more details around what parts and procedures need to accompany any rebuild of those units.