Ok so the lights on my dash that tell you what gear your in, IE park would be lit up but the 1 would also be lit up. When I put the car in drive the D5 is lit up, and the 1 stays lit as well...no matter what gear I go into..the 1 is always lit up. I tried putting it in 1 to see if it would turn off as if the sensor didn't aknowledge the switch the first time it happened. But no luck.
Has this ever happened to anyone before? Is this gonna cause transmission problems or something else major??!? I will post a pic to make sure I'm understood asap. But I just want to know if it's bad and if it's fixable.
Thanks guys!

 

First off, it's not an indication that anything is wrong with the transmission.
When you switch into Sports Shift, D1 (and all the others) goes out, right?

I checked the service manual and I'm 99% sure your problem is with the transmission range switch. Each indicator position led receives power from the PCM and the TRS makes ground based upon the position of the shift lever. It's doesn't look like its too hard to replace - a connector and a few bolts.
PM me if need pictures.

 

http://yfrog.com/13photo0408cj Pic of MLPS or Range sensor. Locates on the lower end cover of the transmission, you'll see a black cover held in by two 10mm bolts, take it off then you will see the mlp switch. When replace it, make sure that the car will start in park and neutral.