I can't get the 700 transmission installed in my 65 impala ss to shift properly. Additionally, overdrive never kicks in. 1st to 2nd shifts hard but 2nd to 3rd is nice and smooth. Any ideas?? The motor is a freshly overhauled 327 with original intake and 2 BBL carb.  I've been told that a 700 overdrive transmission will not work when the "TV" cable is hooked up to a 2 BBL carb, is this true? Please help.  

Sounds like you have an early model 700. 82 - 84 700s have the 27 spline input shafts us Impala guys have with our drivelines. Unfortunetly these are the worst cores to use. Early 700s were designed first as truck trannys. 1st to 2nd are notoriously steep. Bad adjustments to the TV cable are common ways to break the 700. Its what gives 700s a bad name. My suggestion is to get the TV cable adjusted proffesional quick.
My 65 has a 200 because its direct bolt in to the 400s, same 27 spline shaft, no need to move the crossmember or shorten the driveline. For all those that dont like the 200s, three words, Buick Grand National.