Slipping transmission '79 300SD

Greetings Everyone, Need some input on a transmission problem. My '79 300SD began slipping yesterday, and flairing badly between the 3-4 shift. Change was quite sudden, as in between one intersection and the next. It has been shifting fine up until now. It will now hold RPM only at light throttle, and will slip badly under load in gears 2, 3 & 4 and flairs on all shifts under throttle. Fluid & filter were changed less than 1K ago, and pan showed no debris or metal then. Today I tested the modulator, and it does not hold vacuum, but is getting signal from the pump. As a test I unhooked it and plugged the lines and test drove. No perceptable difference. Will a bad modulator cause this severe of slippage? I am thinking that 0 vac to the modulator should increase pressures and harden the shifts, but maybe I'm thinking wrong. Now I'm looking for more ideas. Anyone know of other components or systems I can check and/or replace while in the car, or is this one just toast and is it time to rebuild? Any thoughts are helpful. Thanks.

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