can an auto trans 'drag' without failing outright?

[mole2000]

It seems like my th400 has a lot of friction in forward or reverse gears. To go in reverse requires some pretty dramatic rpms to get it rolling. I dont have a tach to get true numbers... In forward it seems to require fewer rpms to start, but doesnt seem to shift at the proper point.

I just had the brakes redone and on the test drive the mechanic thought the brakes were grabbing. He checked it out and said they were fine.

When I shift in reverse though, it seems that the rear squats a bit. Would that indicate a rear brake issue? Can an auto fail this way?

Thanks for any info you can provide.