That will do it, like I said, it wasn't starting out in 1st gear unless you manually put it there.
Im not sure I understand. So when I shifted into Drive what gear was it going into?
So the governor regulates the pressure but from there I don't really understand where it goes and what other component it engages...
Line pressure enters the governor and the governor converts it to governor pressure which acts on the shift valves to control the shifts. With that snap ring not seated, the line pressure passes right through the governor and engages third gear as soon as the shifter is placed in D. Placing the shifter in 1 overrides the governor.
I think the straight edge you're using to check the hub flatness isn't very straight.
