Problem with automatic transmission switching gears on 98 Honda Civic DX

I have a 1998 Honda Civic LX with automatic transmission. The mileage on
the car is around 75,000 miles.

When I try to drive the car from a standing position, the gears on the on the
transmission will start to slip. The engine will shoot up to very high revs
before the car starts to move. And even then the grip on the gears seem to
be very weak and the car will respond very slowly.

The transmission will also slip while driving. When i press on the gas the
engine will rev high and there will be a lag before the gears switch up but
the problem is not as bad as trying to get the car moving from a standing
position.

The strange things  is this - if I drive the car after the it has been parked for
several hours everything will be fine.  The car will idle at a good rev - not
too low not too high and the gears, on the transmission will shift like it
should. You would not be able to tell that the car has a problem shifting
gears.  

The problem starts after about 10-15 minutes of driving as the car warms
up. When the car comes to a stop the car will start to idle at a very low rev
and the transmission will start to slip loosing almost all its grip in drive 4th
gear as well as in drive 3rd gear.

2nd gear is the only thing that seems to not have any problems. When the
transmission starts to slip after a few minutes of driving I use 2nd gear to
start the car moving after a red light or a stop sign.

I have also have a CHECK ENGINE - Light on