My setup is a th400 with a GV on the back, no transfer case as it is 2wd. There are flat spacers in the coupler which attach the GV to the trans shaft. Does your setup have the same coupler and spacers? GV has directions for setting that up. I set mine up properly and had to do it again when I had a different th400 built up. I wonder if this has anything to do with people who say they slam back into direct drive. Bad U joints may cause this as well. Mine doesn't slam, but it does have a firm clunk if you don't rev the engine when you take it out of overdrive. If you have it in manual mode and come to a stop, it doesn't clunk. I tried it in auto mode (I always manually shift the GV) and it only had a small clunk when the computer took it out of overdrive as I came up to a stop.
You can not use the engine as a brake when in overdrive. Down a grade use only direct gears if you are not on the throttle. I can go up hill in 2nd over but can only use 2nd when going down and towing a trailer.
The GV is a hybrid transmission, so to speak. It uses a few different ways to transmit power. I think reverse uses clutches. When my GC broke, I lost reverse and on the road I didn't have any engine braking. It was either cruise rpm when on the gas or an idle when I took my foot off and was still doing 65 mph. It is kind of cool how they combined aspects from other transmissions. I don't remember all the details now. It will run on just about any lube in a pinch, at least in direct drive, and it can run with little lube in direct drive. It seems that you just may loose reverse if it dies. My paperwork recommends GM full synthetic manual trans fluid with a certain part number. It runs around $30 per quart, but it only takes one quart to change the fluid every 5k miles or so, and a little more than a quart to fill a new unit. There is a screen in the oil pan and another finer filter under a plug in the unit, above the oil pan. That plug needs a spanner wrench with two pins. There is supposed to be a snap on part number that fits it. They should have just made it a hex drive so an allen socket would fit.