I assume you mean you replaced K5, the fuel shut off solenoid?
If so, take that completely out of the equation, its only function is to press down on the throttle linkage when not energized to shut the engine off.
You only adjust it to make it press the IP linkage all the way down when off.
When running it should be up and out of the way. It sounds like you had it touching the linkage, holding it steady to stop the hunting.
That is not going to work!
Where is you governor spring on the star wheel adjuster now? It should be between 3 and 4 turns up from the bottom of the thread.
Page 107 and 109 in the -34 TM should help explain the linkage adjustment.
If the engine bogs under a load you want to lower the spring a little closer to the bottom.
If it hunts when a load is suddenly dropped you want to raise the spring up a little bit.
Before trying to adjust the droop again, make sure the linkage is adjusted per pg. 109. A bent or out of adjustment linkage will drive you crazy trying to adjust!