A little low shouldn't hurt. I'd start by running oil pressure checks and see how things look. The governor sends oil pressure to the shift valves in the valve body which are controlled by spring tension and if the pressure is low it won't build enough pressure to kick in the 2-3 shift valve in as fast as it should. I'd first look at the line pressure to see if it's up to snuff then if it's ok check the governor pressure. If you need instructions I have a couple pages from the factory serv manual scanned that I can post that shows the procedure for pressure testing
BTW: does reverse work fine? No slipping and kicks in as soon as you drop it in gear?
