transmission guys, need a little help

Sounds like your tranny has a shift kit in it. I had this same problem last year. That spacer and a stiffer rear servo spring solved my troubles. I wish I could remember the thickness of the spacer. Those couple parts from the transgo kit would most likely solve your problems. Do you have another 727 laying around with a stock valve body you could swap into it? That would be an easy fix also.