Very cool recollection...Do you remember installing, adjusting a TV cable? If not or one was never installed, it's a good bet that a CP valve body was involved. Also, the fact it lasted only 20k miles lends more credence to one being on that trans since that's about how long they typically last (5-20k miles) in a street driven application. Pump rotor/rings/slide likely shattered.
Yes, their main draw is the mechanical TCC lock up control capability...no need for an electro-mechanical internal/external lock up kit for non-stock applications...My resto-mod customers love that sine they don't want to spend time and money monkeying with electrical stuff on a 30s,40s,50s,60s vehicle and the 1st gen valve bodies let you control the converter clutch automatically via the forth bore on the shift valve side of those 1st design valve bodies.
The 2nd design and 3rd design, 88-92, 93 respectively, don't have that 4th bore - it was casted over entirely...
The preferred approach for any performance application involving a 700R4 is to use an 88+ core with an 82-87 valve body to give you the best of both worlds...The 88+ 700R4s have the most updated input drum, 29 element input sprag, wider low roller clutch/center support, 10-vane pump assemblies, aux valve bodies for softer garage engagement into drive and a better engineered low-reverse circuit.