We are drifting off topic here,but while we're on the subject of modulator valves--
When I had a bad modulator,or the vacuum hose came off one or no vacuum was getting to it, on TH350's and TH400's,the transmission would upshift harsh and very late,(like first to second at 35-45 mph!)--and when you let off the throttle, there is no "engine braking" effect...never understood why it feels like "neutral" when you let off the throttle,when there wasn't any vacuum supply...
My TH400 in my diesel pickup acts that way in second gear sometimes,it "freewheels" when I let off the throttle--the vacuum regulator valve on the injector pump is NG on it, so I ran direct vacuum to the modulator from the vacuum pump,and screwed the modulator adjustment screw in all the way,then backed it out 1/2 a turn,as suggested by a local transmission guy I knew and trusted..it's plowed a lot of snow and hasn't burnt the clutches up so far..
Its seemed to work OK since 12 years ago that way,(only 5000 miles though!)--but it does shift a bit weird at times--sometimes it seems to upshift into third "early" and other times it takes its time upshifting into third...
I considered getting a cable operated modulator like they use on supercharged engines,but it was way too much for my budget..