I can "feel" OD kicking in around 45mph in Drive under gentle acceleration. Maintain and hold 45+ (like 46-47 up to about 50), press the pedal (like passing a slower vehicle and feel it jump out. Really put my foot into it and it will downshift.

When you did the cable and then pressed to WOT, did the sleeve move out? All that really does is take the slack out of the cable. It's probably feels like it's shifting higher due to it needing more line pressure from the higher RPMs to fully engage the clutch pack.

I was hoping this thread would come back, I was waiting for a steering column to go back together (congrats). I believe that the condition I am experiencing on a particular long hill (see post #2) is actually the torque converter locking up. When I am on "the" hill, and the vehicle begins to bog, if I pull the shifter down into "3" there is no change in RPM, no apparent shifting whatsoever. At the top of the hill though, the vehicle will shift one more time into 4th after I move the shifter back to "D". Additionally, I do notice that on level ground, if I hold the vehicle in second by putting the shifter into "1-2", the second I move the shifter to "3" it shifts into 3rd...and 1/2 a second after that the torque converter locks.
As I understand it, the torque converter locks in both 3rd and 4th gear. It does seem that additional throttle can cause the torque converter to unlock, but I am uncertain about that, the additional throttle may just kick the transmission down to 2nd.

As I say, I do't know the theory, only the results. It shifts firm and snappy. I will say this, I watched the video and did the procedure. When I did it, I pushed the inner sleeve all the way in as instructed, but, then when I pushed the accelerator full open, my sleeve did not move, it stayed fully inserted. In the video the sleeve moves out a bit. So, I moved my sleeve out about the same amount that the sleeve moved in video, then made minor adjustments from there. Thats all I know, and I do believe your mechanical explanation...so I am stumped.

When I did my cable adjustment, I saw the same results as oldnslow. It was nearly all the way in to start with. I pushed the button and pushed the cable adjuster in, maybe a quarter inch. When I mashed the accelerator, it did not pull back out. Is it possible there is a problem at the other end?

To prevent the spread if false and/or bad info and....

Since I know nothing about transmissions and I believe what you say, I did the adjustment procedure again. Made sure to completely floor the gas pedal. (Engine off) Test drive reveals crisper shifts for sure, and the shift points are good. Who knows, maybe I did it right this time? And before maybe I was subconsciously altering my driving to make it seem better? But the inner sleeve did not move out, but the cable also has no slack.

At any rate, Im leaving it as it is, being adjusted as per the video.

I believe the t/c lockup behavior in third is somewhat year dependent. If you're going along at an even speed and throttle, you can lightly tap the brake with your left foot to trigger it unlocking and you should see the rpm jump a bit.

I did lots of driving today, city and two lane highway. 30 mph, 55 mph, 70 mph and everywhere in between. The Jeep runs just like a 35 year old Jeep should. The transmission is working well. I like it.

I have decided to quit fussing over every little hiccup, and just drive it and enjoy it. I mean for cripes sake, I only paid 1500 bucks for it, and I only got it because I always wanted one when I was a much younger man.