Update:

I checked out the modulating pressures via the ports on the tranny and also the governed pressure.

NO modulating pressure

Perfect governed pressure.

I already had pulled the valve from the tranny that sits underneath the vac pod (and its associated plastic thingy) and all looked good in there...seemed to move smoothly.

Anyone know if there is supposed to be a spring in there somewhere? I didn't see any pieces...

I am correct to presume that since the gov. pressure is good that the working pressure is okay. I have the gauges and everything if I need to check that too but engaging gears and anything other than an actual shift between gears being too soft works great...

If anyone has any ideas, let me know. I am going to keep studying the parts manual.

BTW I had the gov. pressure up to about 48-50PSI when crusing along at 60 or so...(not totally sure on the speed) from what my manuals say this seems pretty close to the right value. It regulated from there down quite smoothly so that is how I came to the possible conclusion that the working pressure is okay.

Thanks!