Out running errands last week my transmission, while shifting through the gears, felt like a parachute had opened when going into 3rd. The car started to buck slightly and the RPMs increased but no forward progess. Saturday we removed the tranny pan, replaced the filter and took the governor to be checked. It was fine. After refilling the fluids the problem still exists.

Anything else I should be checking?

Something to check:
http://blogs.hotrod.com/6240535/editorials/hot-rod-automatic-transmission/index.html

Sounds like the one-way clutch locked up, and is not freewheeling when it shifts to 3rd gear, it will cause it to feel like you are applying the brakes, and there should have been obvious signs in the pan, if not there will be soon if you continue to drive it.

Thanks for the responses and info. Since my problem has gotten to this point I guess there is nothing I can do short of taking it to a tranny shop for repair? Also little shiny pieces of metal that looked almost like a disenegraded bolt on hose clamp were found in the pan. Not alot but definitely there.

Always something...........

Yeah, that is your intermediate sprag. If you take it to a tranny shop, it would be wise to have them install a hardened intermediate sprag race, and put in a 700R4 center support and sprag assembly.

Thanks Jim. Just as a question would it be cost effective to have this tranny repaired or buy a new one for around $1000.00? Also any idea of the cost to have the work done with parts? Just a ballpark would be good to prepare myself for the tranny shop.

I don't know much about automatic transmissions, but a friend told me that with some shift kits you can some times get the transmission trying to apply the reverse clutches. I think that is how he explained it. It ends up feeling sort of like the engine nosing over and not pulling.