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If the downshifts on deceleration are smooth, then it sounds like everything except the resistor is working fine. Perhaps the kit is a bit too sensitive, because although when the torque converter locks up it would normally be considered a no-load condition, it's actually a low-load condition and it might be enough to trigger the vacuum switch. (In my car the torque converter lock up is almost undetectable, but sometimes it locks up under partial load.) I agree that it sounds like the resistor isn't quite working.
Oh well. Minor bug.
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