2-3 shift flare

Is 2-3 shift flare caused by the servo?

I've got a C4 with a manual valve body. I shift at 7400 and it flares to the chip at 7800. At lower RPM shifts it looks like about 300-400 rpm flare up.

I've got a stock H servo, but I think upgrading would be a wise decision.

It is caused by the servo releasing quicker than the direct clutch applies..I have heard of this prob still ossuring with aftermarket servo's also.A lot of these servo's are based on the 'H' anyway. You might be able to try an 'R' servo with the smaller release side might help or you might have to tighten up the direct clutch..
A simple band adjustment might help if you haven't already tried that.