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I've just posted about this in mother of all trans thread. I'm pretty sure my car is holding gears when having too much trans oil as well.
Not sure if what I'm having is really "holding gears," it just has really noticable lurches that take away from the smoothness of the car. Somewhat intermittent, it comes and goes. But it's usually there.
Talked to someone who works at the Houston F shop, and it seems like leveling another time is worth a try. No buffer or anything, just correct trans temperature and let out from the overflow plug.