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AT overdrive solenoid not engaging the OD. Bypass/ fix? 200 1989

I have no OD (auto trans) even with a good solenoid. I've read through several threads here about this and I'm about to go out and cut the groove in the old solenoid to make it bypass the solenoid and go from 2nd to OD - eliminating 3rd. Seems straightforward.

I would, however, prefer to fix it so it works properly. This part of OH is hilly and I like to click out of OD manually as a begin ascending.

Two questions (the 1st one w/ two components):

1) (a) What is the problem in the transmission that's causing this? I read somewhere about something breaking/ jamming in the trans itself but couldn't find anything in the archives this morning.

(b) If this bypass trick doesn't work, what's the fix? Is it from an internal trans blockage or a broken part?

2) Brief history and work I've done so far below. Am I missing anything?

- I just put the car on the road. No OD when driven.

- Removed the old solenoid and bench tested: no click. It looks gnarly (or knarly if you prefer but that has a slightly different meaning).

- Replaced w/ one that bench-tested OK and drove. Still no OD.

- Tests & data: dash indicator works; relay clicks; have 12V down to the solenoid.

- Solenoid clicks. I unbolted it; then enabled it (dash indicator off, 12V to solenoid); then touched to the side of the transmission.

- While removed I started the car and let fluid push out of the orifices. There's a thread here about doing that to clear blockages in the trans passages.

- I've driven the car ~ 300 miles: up & down hills; clicking the OD button; coasting and re-engaging the trans; up to 75 MPH; backing off down hills and from high speeds; slow starts; hard starts; engaging passing gear (2nd).

- Misc: Trans fluid level is good; fluid is good - I changed (not a complete flush) but it was good before that anyway; Shifts 1st-2nd-3rd no prob; kicks down no prob. Car has 225K miles. Kickdown cable to trans moves freely and has slack.
--
240s: 2 drivers and some parts cars






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