If you remove the cover on the tunnel, it is easy to feel if the linkage is bound. With the solenoid deenergized, the linkage should move up and down freely. If it doesn't, it is stuck. If the solenoid is in the neutral position, it will also create harsh downshifts when you are coasting to a stop. The solenoid has to be in the low pressure (linkage going down) to have a smooth downshift. Ask me how I know!
I have raised this point before about the solenoid not being switch by the ground but rather the positive side. On my '68 W111, it is absolutely switch by the positive. There is a diagram on this site from Sun Valley that shows that the solenoid is switched by ground. I think that is incorrect and have measured positive through the throttle switch on the Venturi. In fact I tested it last night.
I am posting these diagrams to show the difference. The first is recognizable and the other two are ones I have found that match my wiring. Those two clearly show the trans solenoid is switched by positive and more specifically, fuse #3. It also shows that the throttle solenoid is switched by ground and that IS correct.