We have a bit of winter weather here in SE VA. We had a couple of inches of snow, so the roads are completely white with salt. Ahead of that I put the truck back on blocks and now have the transmission out again.
To review the advice I have been given above:
1. Poster Guitplayer asks why I am whining now after having reported that I am happy with my installation. Answer: I am still very happy with my overdrive operation. I call this shifting problem a separate issue not related to the overdrive unit.
Edit: This is the link to my OD installation adventure:
https://www.stovebolt.com/ubbthreads/ubbthreads.php/topics/1571675/12. Posters Hotrod Lincoln and rfstrk suggest a clutch problem. Answer: I am following up on that advice now.
Per Hotrod Lincoln's advice I put the clutch disc between centers. I found 0.035" runout. I call that negligible due to the disc being flexible. However, my friend who I bother when I want use of a lathe, is very much more observant than I am. He noted a ridge on the outer perimeter of the clutch disc, and he noticed scraping on the disc springs. When I bought my clutch kit from my favorite FLAPS, I was told that the 10 inch disc is not available, but a 10-1/2" would work. I was able to install it without finding reason to not be able to, so I was happy. Now I am not happy. My flywheel measures 10-1/4" diameter on the working surface which does explain why my 10-1/2" disc has a ridge. The height of the springs above the disc face measure 3/32". The depth of the flywheel measures 3/16". This measurement shows that there is enough clearance, but the rubbed surfaces show that the allowed movement of the springs exceeds the available clearance.
I think that what I need to ask now is: what is a correct clutch (disc, disc and pressure plate, or kit) and where should I look for it?