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If you are absolutely certain that the kickdown cable is working correctly (try disconnecting it from the throttle spindle, pushing it all the way in, and driving the car) then my guess is that one of the valve body check-valve balls has become so worn as to float downstream clog something up. If you want to pursue this further you will probably need to rebuild the valve body, I'm afraid there is no simple patch-work fix to be done here. If it were me I'd would just get a used transmission, replace the rear bushing and all the oil seals, and swap it out.
Best of luck
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Matt L. -- Cary, NC -- '91 740 wagon
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