Hi John, it might be corroded connectors providing too much resistance for the lower speeds to operate. I had the same problem and did these things which worked for me. I checked them again when rebuilding my heater last week.
1 Connections to motor on the left hand side of the heater box. Stick your hand up there and you'll find the green or green / black wires (I think) that connect to the motor. You can't see them unless the dash is removed but you can run your hand up the cables from the speed controller to find it.....Move the female connectors up and down on the male tab to clean up the connection. Note - the heater box is upside down in this pic
2 Remove the fake speaker panel from the top of the dash to find all the connector blocks. One of the smaller ones and most likely at the top left is the heater block. Green / green black wires again I think. Pull apart and clean / check for corrosion and correct position of pins / tubes in the blocks. Don't pull the wires too hard as there isn't much slack as the motor resistor panel is very close by at the top of the heater. Damage this and the dash has to come out..........
One of the s/hand heater boxes I bought had fried 2 of its resistors on this panel. Hopefully this hasn't happened to yours. Easy to replace in the top of the heater box itself, the bare resistor wires are in the fresh air stream, but the dash has to come out.......
3 I don't know if this helps connectivity but if your heater levers have become sloppy they can be tightened up easily with a small hammer and dolly. Remove the dash cover from the heater lever section and just tap both ends of the shafts gently together and they will close up. This firms them up and restores the friction required to stop them free falling on their own.
Hope this helps.
Adam
TR7 V8 DHC Jaguar Solent Blue. 9.35cr Range Rover V8, Holley 390cfm, JWR Dual Port, 214 Cam, Lumention, Tubular Manifolds, S/S Single Pipe Exh, 3.08 Rear, 200lb Spax & PolyBushes all round, Anti- Dive, Top Roller Bearings, Capri Vented Discs & Calipers, Braided Hoses, 4 Speed Rear Cylinders, Uprated Master Cylinder & Servo, AT 5 Spokes and Cruise Lights. S/S Heater Pipes. No Door Stickers. Mine since July 1986, V8 from 1991