Thank you all very much. I think it is all starting to make sense. There is a modulator adjustment access at the tail of the transmission housing on the passenger side just like C32AMG said. It has a 17mm cap.

The origianl owner who replaced the transmission with a rebuilt one almost certainly did not adjust the transmission properly. So I think I will do this:

1) change the ATF and filter (7 years old).

2) set the shift points according to the maintenance manual.

3) If it still flares, crank the modulator adjust screw in.

I paid the original owner $400 for this car, It is in excellent condition. The body and paint are really fine. He couldn'y get it started the last time he performed maintenance. After I got it home and replaced 3 siezed injectors and the starter it fired right up and it runs good. The starter was weak and was straining against the force of compression.

I will report back on the modulator.

Meanwhile I want to start a thred on horse hair.

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JMF