Thanks Adam,  I'll look into that option this week.  Looks like I'll have to replace my floor jack first..lol

Ok, finally had a chance to work on the tranny issue.  I picked up a new modulator, removed the old one.  No fluid on hose end, but replaced it anyway since I had a new one in hand.  It was shorter than the original one, but Advanced Discount Auto's site stated that it was supposed to be that way.

Like a fool, I checked the fluid level again with the car off and cool.  Yeah, I know.  The dipstick showed the fluid high, so I took too much out....and of course: no third gear.  After realizing what I did (not check levels with the car at temp and running), I adjusted the fluid to correct levels with the fluid I removed when I was playing the fool.

Here's the interesting thing: when the fluid level was just below what 1/2 way through the "Hot, parked at idle" seting was, and volia - third gear: BUT, it would slip out 3/4 of the time. 

With the fluid at closer to the "hot, parked at idle" level, almost NO third gear. 

Reverse? yup, it's still there.  Maybe a 1/4 of a second delay, if any.

Ok Adam (aka THE DOCTOR), what's your diagnosis?

Pull it!
It really sounds like the damage is done. I'm betting the high gear(direct) clutches are burned, due to other problems, such as running low on fluid. Sorry it can't be better news, but......
If you don't have a specific trans shop that you deal with, send me a P/M, or e-mail with your zip code, and I can recommend one for you, if you like.
I am working on a "Transmission 101" article, that takes you through the tear-down, reassembly, and modification of the 350 trans, but it will be a while yet before it's ready.