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Dave, I thought the governor controls the 1-2 shift when the shifter is left in 1st.
The adjustable vacuum modulator can alter the shift points. The adjustment screw is inside the vacuum port.
Unless the mid 80's diesel TH400's are different than the 70's
I have mine set for a 5500 rpm shift...
A 383's gonna have more torque than a 350 because of the longer stroke.
If your rocker arm ratio is bigger than 1.5 that could put it past the limits of a stock TC
Did you put a new or used carb on? If used / not freshly rebuilt, then that is probably the issue.
Oh and if your rear brakes are...