I have an update. For the sloppy 2-3 shift I installed a transgo shift kit part number 700-2-3 and a .500" boost valve. The kit did not recommend the .500" boost valve but that was all that was available and it works great.
Follow my post # 85 to diagnose your problem. You can mount Q16 elsewhere, just make sure it's isolated from ground. You should be using D14.
motomanmike: If you are not using D14 that could be your problem.
The cam isn't worn... I stated the valve lift figures were inaccurate, not the entire chart. Has anyone here actually measured valve lift or is everyone completely relying on that chart?
It's a common problem with the hydraulic lifters. Get the engine oil hot and change the oil and filter. Use a good filter like a Wix. Avoid cheap oil filters such as Fram.