What was found
ON CLIMBOUT, FLAPS WOULD NOT RETRACT PAST THE "2" POSITION. RAN THE QRH AND FOUND NR 8 SLAT WAS STILL OUT. IAW QRH, PLACED THE FLAPS AT "5" AND RETURNED TO DEPARTURE. UPON TROUBLESHOOTING, DETERMINED THAT NR 1 SLAT WAS SHOWING "GREEN" AND DOWN AT FLAPS "2" WITH A FRONT PANEL AMBER FLAPS INDICATION. NR 1 SLAT VERIFIED RETRACTED AND ALL SLATS IN THE CORRECT POSITIONS AT FLAPS "5", "2" AND "0". NR 1 SLAT INDICATION IS INCORRECT AT FLAPS "2" ONLY, INDICATES CORRECT AT "5" AND "0". INSTALLED SLAT ELECTRICAL JUMPERS, NO HELP. ACCESS PANEL FOR NR 1 SLAT EXTEND SWITCH REMOVED. IAW WDM 27-80-00, FOUND GROUND AT PIN 27 OF D1942 (M818 IND CONTROL MODULE) WITH SLAT RETRACTED, SHOULD BE AN OPEN. SUSPECT SHORTED WIRE. REPLACED DAMAGED WIRES W562003-20 AND W562003-20.