I tried to tell you this back in November that drilling holes in the plate for a 98 were not the same as drilling for your 97. Now, if you did happen to find the correct drilling specs for your 97, you still replaced the valve body gaskets with gaskets meant for a 98 trans. The plates for the 98 and 97 are not the same and holes are in different places. The 98 plate does not have holes that the 97 plate does have. With that said, this means you have gaskets that are also missing holes........ <-----get that?
Now, you have gaskets that are missing holes and clamped together inside a 97 valve body. This would tell me you have some limited fluid flow somewhere. Check the picture below. At the top of the plate, you have 5 holes to drill. On the 98, you would be drilling 4 at the top. 4,5,9,11 and on the 97 plate, you have a hole right beside hole #8 that you don't have on the 97 which means you have this hole stopped up with 98 gaskets.
97 plate below
I'm almost positive that your problem is having the wrong year gaskets on there. You can't be torquing to pieces of thick aluminum together with a thin plate in between that has holes in it that the gaskets don't have. Something somewhere is not getting the fluid it needs which means it's not getting the hydraulic pressure the solenoids are needing and in turn is not giving you the power that you think you have lost. You only have it blocked. The transmissions changed from 97 to 98. Stop and slow down and comprehend these changes. You're gonna mess around and burn up a solenoid that isn't getting fluid it needs or the O/D servo could go out, anything could happen. Also, 12 quarts is more than sufficient. It does not need 13 quarts of fluid. Get the right gaskets from Maxx. Let him know you have done the J-Mod and you will get the correct gaskets within 2 days for about $3 or less each + shipping. Check the balls too while you have it apart.