a727 no third gear

Well, it's probably the valve body, but I always like to check the drums on the pump with it mounted in my vise. That way I can see the piston move and the pack compress; so I can get an idea of how much clearance I have in real time. Is reverse delayed?
I did air check the front and rear clutches seated on the pump in a vise, I believe I ran 30 psi through it, everything seemed to be working like it should, the outer rubber piston seal for the rear clutch worked but I noticed when I was inspecting it, it was a bit "stiff" ish , its cold in my garage and I now the rubber would probably worm up and flare and seal when warmed fluid got in contact, I did otice too that when on the vise both clutch pack seemed to seal better then when in the transmission and pressure tested through the ports in the tranny. I did try and put some atf down the clutch ports and aircheck with I think 25-30psi. there was a light thud in the front clutch with air hissing. I know air can move a lot swifter than fluid can but wondering is that normal...