Well, it appears that the valves in the valve body were not the cause of my problems. I removed the valvebody today, in the scorching heat, and removed all valves and cleaned them again, and reinstalled making sure each one was not sticking. I also drilled the spacer plate to the specifications in the manual.
I used new gaskets and reinstalled everything. Filled it up with fluid and went for a drive.
While the pressures are slightly elevated, they still hover near 100 PSI, dropping slightly while shifting gears, but the pressure never gets above 130.
As I increase throttle, the pressure momentarily increases to about 130 from 100, but then drops back to 100 right away and stays there.
The shift fron 2-3 at all throttle points LESS than 1/2, it shifts fine, but when you go past 1/2 throttle the flair exists and is really bad at WOT. I suspect this is due to the lack of pressure. I think that at 100 PSI, the pressure is sufficinet below 1/2 throttle, but since it does not increase with throttle, any more than 1/2 throttle, this static pressure of 100 is insufficient.
As well, I did the min/max TV test while in D2 and D1, and still, the pressure is not affected when the TV is pulled to max. The pressure remains approx. the same as at min TV.
Any suggestions as to what my next step should be?
Thanks again guys.