The TV cable needs to be right, close enough won’t get it done. Ideally the cable needs to be adjusted with a pressure gauge connected.
Unless you have a really stout 400 engine (500-600 hp) a 700 is just fine.
Drop the pan, I bet you find a bunch of crud in the pan. That’s the remains of the clutches and band.
When you rebuild the trans, install the raybestos Z pac, wide band, upgrades drive shell, updated input sprag, hardened pump rings, and a decent shift kit.
Once all that is done, make absolutely sure the TV cable is adjusted right. The line pressure needs to increase as soon as the throttle is increased.
BTW, the linkage on a old school carb for the kickdown linkage won’t work for a 700.
Read this, even though it says 2004R, the process is the same.
https://www.ckperformance.com/Files/112573/ThrottleArmTVarticle.pdf