Engine dies when put in reverse/drive, 99 out 100 times

You're on the right page. The 3-2 solenoid does look like the TC control solenoid, and is in the exact same position on the other side of the transmission. However, the TC lock-up solenoid is actually inside the pump, but visible if the control solenoid is. http://i420.photobucket.com/albums/pp282/ssgjurista/4L60E/4L60EValveBodyTypical.jpg Check that out, it will show you where they are, and they can both be replaced without removing the transmission, which is fantastic if that is the cause. The control solenoid is what actuates the lock-up solenoid, and if either are faulty, the TC will always be locked or unlocked. At this point, it would really help you to scan for codes. OBD-I will still spit out codes, and if you don't have a scanner, find a video to tell you where to install a jumper wire or paperclip to get the CEL to blink for codes. If you don't find any physical damage, permatex sitting in random places, especially if that random place is important, and the valve body flushes cleanly, get a scan tool on this thing. It is really a matter of finding out what the transmission is doing, when, and why. The other thing, have you figured out why the RPM sits @1500 at idle?