Remember that adjusting the modulator will affect ALL gear changes, not just the 2-3 shift. I'd say there is still an underlying problem, but play around with the adjustment as per the advice - you should get the 2-3 shift firmer that way and, if you can live with firmer 1-2 shifts as well, then that may be your solution for now.

My guess is that it's more than likely a valve/spring/seal problem. My Haynes manual details the removal and total disassembly of the valve body, but doesn't mention anything about specific problems. Send me a PM if you want me to mail this to you.

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2006 C180K 112000km
1980 450SLC 123000km
and a Toyota