I bought my 85 Burb cheap because it has similar 700R4 woes--has lost reverse after a 20+ mile ride before,and wont go into O/D ,or at least stay in if it tries upshifting...
I assume any automatic that has issues like these "junk" and expect to have to replace or rebuild it--it aint often a 700R4 acts up and can be "fixed" with a simple adjustment of the TV cable or a fluid change,usually they are good or junk,no in between...mine has had reverse work fine in my driveway ,but it would probably lose it after a good ride--the previous owner only tried dumping the old fliud out (that looked like charcoal !) and put the pan back on it,after using brake cleaner to wash the pan and filter off (didn't bother to replace the filter!)--then dumped a quart of Lucas trans treatment in it ,drove it only a few times after that before I bought it from him...
I have been keeping my eyes open for a cheap "good used" tranny for it,so far I have seen a few for 200 bucks or so on Craigslist,but haven't bothered to go after them,due to the fact its easy to get "taken" when buying one that you cant test drive and pull out yourself...I've considered going to a TH400 or a TH350 instead,I dont really need overdrive,and I'm not a big fan of 700r4's,they just dont seem to last long --but if I can find one reasonable I know will work,it IS a lot easier to bolt back what came out of the truck...
If the govenor gear was stripped,you'd only get first gear & reverse....usually when the higher gears (thiird and O/D) start going out or slipping,etc,its a death sentence for a 700R4....