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A TC is basically a wet clutch, when it locks, it sends all power through the driveline.
87-96 all use a rather wimpy 1500-1700rpm stall speed TC, so when it hits that RPM it fully locks. Below that RPM, it is not sending all the power through. 92-96 cars need more stall than the L98s do, because your power band is higher in RPM.
Raising the stall speed effectively acts like dumping the clutch at a higher rpm, but more smoothly than an actual mechanical clutch because of the slippage below stall.
For example, I run a 2400 Vigilante. My car will move around just fine below 2400rpm as I accelerate smoothly, but the transmission could feel like its slipping if you are not used to feeling this. When I hit 2400 in 3rd gear, I can feel it lock. It almost feels like another gear shift. When I am cruising and let off the gas and coast to a stop, I can feel it unlock. However, if I gun it from a stop, the engine will shoot up to 2400 quickly and it'll lock up and spin the tires as I take off, which gets me right into my torque band if I wanted to race from a stoplight, just like dumping the clutch at 2400rpm
So at a lower rpm in od it will stay locked in. Next question is would I need a transmission cooler added?
IMO about the only way to know for sure would be to monitor the transmission temp. Whether it's a TC with a higher stall speed, lock up setting, higher differential ratio, load, if the transmission is turning more or harder it's going to generate heat and that's one thing that will help kill a tranny.
There is a range of temp that is recommended for the transmission to work in, just like an engine has. Unfortunately I don't know what those values are. To my thinking, unless a tranny cooler pulls out too much temp and lowers it below the minimum temp, a cooler is a good idea for pretty much any vehicle as it should help with transmission life.
Next question is would I need a transmission cooler added?
Behind the stock engine, I would not say you "need" the cooler.
However I would tell anyone with a 700r4/4L60 that a cooler is a good addition to the car and will extend the life of the transmission. Heat is what kills them in the end, be it from a lot of torque from the motor or whatever.