Ok, What have I done now... (904 problem?)

for the last 2 1/2 years my 1974 904 has been running this, and shifts like a mad dog.

Normal ATF+4 is not synthetic. You are buying Valvolines synthetic version of it. Again, I'm not saying it won't work, but it isn't designed for his transmission, and he is having problems. The first thing you do is make sure everything is installed right and the right fluids are in and full. Very basic. If there are still problems, then fluid type can be crossed off the list.