First time rebuild problems-trouble upshifting

I measured thecheck balls so I know those are in the right placces.

The TV spring is in the correct location, used the yellow one from the kit.

I realized that I didnt disassemble the governor weight itself so I didnt see the spring inside.

I measured pressures today, heres what I got.

Line pressure is 100 psi at 1500 rpm. Increases to 125 psi when TV in full forward position. Gauge exibits a bounce thats much more pronuced at idle.

Reverse servo gauge bounces wildly across entire gauge sweep, with an average 300 psi and gets higher and more eratic with TV forward.

Govenor pressures read about 5psi at standing stop. Increases with speed up to about 40 mph to a max pressure of around 20 psi. Gauge bounces rhythmically between 10 and 20 psi the entire time.

What in the hell is going on here? It acts as if though the regulator valve is not doing its job but I used the springs from the kit and adjusted it as per instructions.

I think your on to something. It sounds like the main pressure regulator may be sticking.

5 psi governor pressure at stand still is way too high. No wonder it's not shifting right. The pressure needs to be much lower (absolute max of 2 psi at idle, less is preferred) and it's possible the issue is with the main pressure regulator valve. That's where I'd start looking. Make sure it's adjusted correctly and not worn/scored and hanging up. My guess is you'll find it scored and hanging up necessitating replacement of the valve body. Aerated fluid as PoisonDart suggest can cause erratic readings and it's worth checking into before you tear everything apart but I have never seen aerated fluid cause overly high readings like yours are.