98 12 valve - 47RE tranny

The Problem:
Truck was running like a top.... So I shifted the truck into 4WD the other day and I immediately noticed a loss of power. Put it back into 2WD - still lack of power.... This loss of power has persisted since then during all driving (2WD & 4WD)....

I can tell this because I used to be able to idle up the hill on my driveway... now i cant....

wth?

Other Information:
The idle and 1st gear rpms have not changed (980 rpm idle, 750 rpm 1st gear).

The only thing i've noticed that is different is I used to hear the governor pressure solenoid clicking before I started the truck.... now I can't.... ????

Torque Converter was replaced 2 years ago.

It also seems to be blowing more smoke now than before getting up to speed.

Would the governor pressure solenoid have anything to do with this?