I have just put a shift kit in my 87 700r4. I know its a year that they did the change over and mixed and matched parts. I put the tranny back together using the 87 and later instructions but the trans did not have a aux valve body. I called tci who i got my shift kit from and they said to use the 86 and prior. I took the tranny back apart and used those directions. I double checked where i had the check ***** and added the one needed for pre-86. I still do not have 2nd or 4th gear. It shifts 1st to 3rd. Manually when i put it in 2nd it just revs like in neutral. It shifted perfectly before this mod. could chirp 2nd no problem. Please help.

 

The 2-4 band is what appies for 2nd and 4th gears. You'll probably want to pull the pump and make sure that's in there correctly. Check where the servo pin presses against the band as well as the retaining pin that comes up from the bottom of the case.

I'm going to go out on a limb to say that that pin worked out a bit when you did the shift kit and it is not engaged in the band to hold it.