Check for vacuum leaks. The 700R might still use a vacuum diaphragm to sense load on engine and if vacuum is zero it will think it's under full load and stay in the lowest possible gear. Also check for mechanical cable that tells the trans the throttle position. Trans should upshift by overriding centrifical governer at about 40mph depending on rear axle ratio. That's pretty high rpm for an old engine so try that AYOR,
T
Tom Greenleaf - MetroWest Boston - USA
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http://www.autoacsystems.com/tomgreenleaf/