if you plug off the egr/3.2 valve vacuum lines and you still get a flare - I highly doubt that replacing a 3/2 valve is going to fix a flare. I've rebuilt mine, and had the whole assembly on and off a few times - it has very little impact on the shifting. In any case, a big leak there would probably lead to harsh down shift from 2 to 1. not the flare, which will be more related to the pressure setting in the modulator.
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Andrew
Montclair, NJ
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1982 300D Turbo
120k
Petrol Blue Green
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