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How did you get to timing chain???? Dude, replace the VRV, it is a 32 year old plastic pos. The vacuum level at the transmission needs to vary from about 8 to 25 inches as you move the throttle from wide open to idle. Pau!

So that tells me the transmission is fine, the VRV is not VRVing or is way out of adjustment.

Rusty, I thought disconnecting the modulator would result in high rpm hard shifts, or no shifts st all. Full vacuum to the modulator should result in shifts at low rpm.

Welcome to the forum. Does the vacuum at the VRV (device on the IP) vary the vacuum going to the modulator? It's purpose it to duplicate the vacuum levels that a gas engine would generate at various throttle positions. Low vacuum= harsh shifts at high RPM. 12 is kinda low.