Jeff's 727 rebuild thread
Jeff if you haven't already disassembled it try something first. Adjust the throttle pressure linkage so it puts more pressure on the throttle linkage at idle. I once had a 727 that had a governor that no matter what I did put out a little pressure in drive which would cause it to start out in second gear when the shifter was in drive like you said yours is doing. Once I adjusted the throttle pressure linkage a little tighter the throttle pressure over rode the governor pressure and it would then start in low gear like it was supposed to in drive.