Most street chips don't lock the converter at WOT so it sounds like yours is working as expected. The 3rd and 4th gear switches are normally closed (shorted to ground). The 3rd gear switch opens in 3rd and 4th gears, and the 4th gear switch opens in 4th gear. The connector on the driver's side of the transmission, above the shift linkage, has four wires. The purple wire carries power to the tcc solenoid, the tan/black wire goes from the solenoid to the ecm, the green/white wire goes to the 3rd gear switch, and the light blue to the 4th gear switch. If you unplug the connector from the trans and turn the key on without cranking the engine, direct scan should see both 3rd and 4th gear switches as on (this tests the ecm sensor circuits and the wiring). Also, with engine off both gear switch pins on the trans side of the connector should show a short to the case of the transmission. If unplugging the cable lights the switches and they ohm out as shorted, then either the switch wires are shorted to ground inside the trans pan, or the switches are bad and not opening when they are supposed to.