According to one of my instructor during the free lesson, he stated that the "1" , or "2" in auto modes actually means that the gear will shift and stop at 1st or 2nd gear..
Meaning to say if you choose "1", it'll stay in gear 1 all the way.. = Dragging the engine all the way..
From
http://www.tpub.com/content/engine/14081/css/14081_57.htm"L-LOW or POWER POSITION.— T he transmission will not shift automatically to higher gear ratios when the lever is in the low position. The low position is used when negotiating steep grades and rough terrain or when the braking power of the engine is required. When low range is no longer needed, release the accelerator temporarily and move the shift lever to the drive position for normal gear progression. In the drive position, the low range is engaged automatically when engine speed is reduced. If the accelerator is suddenly fully depressed, the low range becomes engaged. (This procedure may be used to provide a sudden burst of speed for passing.) When a predetermined engine speed has been attained, the transmission automatically returns to driving range."
And from
http://www.sdt.com.au/CHANGINGGEARS.htm"In some situations the driver can without depressing the selector button change to the 2 setting. This is not just second gear but rather will allow the gears to change between first and second gear only.
This position is used for extra power when driving up steep gradients for lower speed overtaking or to provide engine braking when descending prolonged steep gradients.
The 2 setting should not be used for braking, like before cornering."
Btw, the 1st Auto license (3A) were issued few days ago only...