AOD LOCKUP vs NON-LOCKUP Torque Converters
NON-LOCKUP converter means transmission NEVER "locks up" with engine, which means the converter is always slipping, at any speed, rpm, throttle position...This also means more heat so make sure you have the biggest "stacked plate type" cooler you can fit...if you took my advice a few years ago about the Hayden version, you're good to go on that. The non lockup converter is "usually" the better choice for a street/strip car, but obviously since it never "locks" your cruise mileage will suffer...
LOCKUP converter on an AOD means that depending on what aftermarket valve body you have, the converter is "locked up" in either OVERDRIVE only, or like a stock AOD, which means lockup in DRIVE and OVERDRIVE. The latter type is/was the main cause of higher powered cars breaking their input shafts. Stock aod has a two piece input shaft (inner and outer). Outer (stronger) shaft is for Reverse, 1st and 2nd gears...smaller (weaker) inner input shaft is for Drive and Overdrive.
Look at it this way...you take a car that's making some power...add a shift kit and a higher stall "lockup" converter. The converter is doing it's job and slipping (as 100% of the torque converters do) to multiply torque in 1st and 2nd gears, but when it shifts into 3rd (drive), the converter is also "locking up" at that exact moment and depending on the small, weak inner input shaft to absorb the horsepower and torque of your engine...It usually doesn't take too long to find the weak link, which is the inner input shaft. You make 500rwhp, and shift into DRIVE @ WOT and BANG!!!, there goes the inner input shaft, which means you lose DRIVE and OVERDRIVE gears in the transmission since there's no longer any "connection".
Lentech and others found that by using a one piece input shaft and not allowing the converter to "lock-up", the transmission was alot less likely to have a failure.
FWIW, there was a freak AOD valve body formerly sold by LenTech which was known as the Street Terminator Lock-Up, which re-directed tranny fluid and only used the inner shaft for OVERDRIVE only. For ALL other forward gears and reverse, it used the much stronger and damn near indestructible outer shaft