Only thing I can think of is the TV cable stayed "out" and kept the tv valve pushed into the valve body...the smell of burned oil may well have been due to some leakage...
When the TC lockup solenoid is energized the valve open and dumps oil pressure from the front side of the lockup clutch....system pressure then pushes the lockup clutch against the convertor body for lockup.
Has this trans had an aftermarket shift kits added to the valve body?
There are some constant pressure modifications possible the the TV circuit...
In any case, you are very lucky...I have seen 700R4's die totally fater less than 5 miles of driving with a disconnected TV cable.
