I run a TCI Street Fighter C4 with a brake in my Mustang. They have a tech section at their site with a list of line pressures gear by gear for all transmissions they deal with, including the Turbo 400. Here's the link:
http://www.tciauto.com/tc/trans-line-pressure
Looks like 180-200 for a TB in a TH400 no matter what gear.
I've heard of drilling in a trans case to convert to brake and if it wasn't done correctly it could be your problem. My TCI came with a reverse pattern manual valve body with the trans brake built in.
If the line pressures check out take a look at the return spring in the solenoid setup. It's responsible for moving the pin out of the way to return the trans to normal operation. You should hear a very crisp snap when you release the button with the engine off.
Dale