Failed 240D Modulator?

[DieselPaul]

I bought an 82 240D automatic and it was underpowered. I figured out some of the linkage rods were bent and it wasn't getting full throttle. It shifted really early and a little soft, but well enough. Adjusted the valves and changed the filters, runs really nice now.

I straightened the rods and adjusted the linkage so now it gets full throttle. At full throttle it still shifts low but will flare if you've got it floored. At half throttle it shifts at about the same places but doesn't flare.

Fluid level is right and the fluid is nice and red.

I removed the EGR and simplified the vacuum system, no changes. At this point I have the VCV, 3/2 valve, and modulator drawing from one T on the main vacuum line, and the shutoff drawing from the other. The car shuts off and the brakes feel fine, so I should have vacuum.

Messed with the VCV on the pump, from correctly adjusting, to excessive tension or very weak preload on the coil (exhausting random possibilities out of frustration last night). No change.

I ran vacuum straight to the modulator, no change.

Unplugged the modulator entirely, no change.

Turned the modulator up a turn, no change.

So, to me full vacuum or no vacuum to the modulator making no difference means the modulator is bad. I've never seen a modulator totally fail, does this happen? I believe its a 722.118. A new modulator from the dealer is $50 so if people have also experienced total modulator failure I'll order one Monday.

Since the .118 doesn't have a bowden cable and the modulator controls the shifts entirely, I would think its fairly critical.