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Yes, running hot at high speeds is a sign of excessive TC slip.
I'm not personally aware of any aftermarket way to get lock-up with a TH400, the problem is the transmission case and plumbing is just not built with that function in mind. Simplest modification I know of is to move to a 700R4. K5...
700R4's can also feature a lock-up converter which adds tremendously to the MPG. Without a lock-up torque converter, the converter just slips all the time losing power (and MPG) to heating the radiator... Also the faster you spin the engine the more power the engine needs to produce to...