Automatic Transmission problems of the 1999 Toyota Avalon

Problem 1: the car shifts poorly when you let off the gas and then accelerate or do a rolling stop. Toyota's field technical specialist, ron wytock said that those driving situations produced a 2 gear downshift when it shouldn't but that was normal and not repairable. Problem 2: the car has a very nasty, acrid odor, that gives us headaches and makes us nauseous when we drive it. We have taken the car in more than 4 times in attempts to get it repaired, but the smell is still there. We are concerned because the smell makes us ill: we are concerned the car may catch fire; and we are concerned car components may fail while we are driving. Toyota has guessed at several causes of the smell, but now says the smell is normal and not a cause of concern.

Obviously the car had been leaking every since we took delivery. The had to take the transmission out to make the repair. This is a brand new car and the will not take it back. I no longer have the faith or trust in the vehicle. I have checked the lemon law . Could this problem cause a fire? what are my rights? I have contacted Toyota corp.

When slowing down and then stepping on gas to accelerate the car jerks noticeably. Toyota says that this is a characteristic of the car.