[Lars]

Instructions for band adjustment involve tightening to a defined torque and then releasing 1 - 2 turns. How does tighter/looser adjustment affect shifting? Thanks for answers!

[dave-r]

I had a look in a manual but have not found any definate answers to this. I think if it is too tight they will drag and overheat/burn/wear out.
Less likely (depending on which band was effected) I think it might fail to change up or stick in reverse or something like that. But they would have to be very tight to do that.

Too loose and I guess it might fail to change up or down correctly or late. Maybe slip on the 1-2 shift. Take a longer time to kick down or something.

Just guesses. I would get it as close to the correct spec as possible if I was you. I can't see there being any advantage to a tighter or looser spec if that was what you were wondering.
I think there is some tolerance built in though so as long as it is not too far out either way each band will still work as it should.

[Joel]

Personally, I would rather pay someone who has been trained to fix transmissions than fiddle around with my own tranny, eh?