When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.
A little hard to understand your post. Does it clunk when you put it in gear or just shifts hard? Maybe the PO had the tranny modified. Is the car mostly stock?
I would say that it has engine mods and possibly still has the stock torque converter. With higher RPM's needed for idle speed it would cause the car to go from Park to Drive hard. Do you have a list of the things done to the engine and driveline?
The 1998 C5 uses the 4L60E transmission. These transmissions used a variable force motor to control pressure. If the solenoid has failed or if it's unhooked, it will default to maximum line pressure. This will cause a firm engagement and firm shifts. There are also various codes that will cause it to default to maximum pressure. Pressure is also able to be raised through the tune. Is it possible that it's been raised? As already mentioned, this could be too much play somewhere in the drivetrain as well. The best place to start is to pull the codes. If there are none, I would put a pressure gauge on the trans to confirm what the pressure is.