I too have seen the mod called good on the US 80's and noted Chapel Gates. For me it seems to work perfect, and without wishing to rock the boat, I have found some prefer to remove it rather than repair it. The reasons are numerous, too expensive to repair, it did not work properly...and so on. But, when you look at the posts of people that have removed it, it is mainly because they have had issues with it's failure and not because it caused problems during every day use.
For the record you can have a perfect ABS system and still get problems with it's operation, the 80 is a classic for this. The bushing in the front spindle wears, this allows the CV to oscillate. The tone ring moves away from the sensor and the ABS activates. This normally occurs when slowing and just coming to a stop, and you hit a small bump, I have seen it a couple of times on the 80 of customers and once on mine (left front), replacing the bushing and the 'pedal pulse' stops. IIRC a code is set for each ABS activation and if it was a simple wheel slip senor then it would clear at restarting. If it keeps triggering it during the 'key on' time then the code will not clear until the fuse is pulled?
Also, you can have a car that passes the MOT but is illegal on the road. Unsure if this is still the case but, years ago the tester never checked the battery security, so if it was not fixed in place he would never know, a traffic officer would know this and be one of the first things they check when they lift the bonnet and give you a fine. So, does this mean that if an MOT tester calls you car good, and regardless if he acknowledges the ABS system removal or not, and then later as you signed the insurance part where it questions 'has the vehicle undergone any modifications?' then you now move onto thin ice IMO if you fail to declare?
Lorin, I would grab a wiring diagram and a decent meter and start probing, 35/36 does normally react to wheel slip sensor fault, or more likely the wiring at the valve block? I know you have checked and cleaned but, an ohm meter between the connections would be the minimum to do.
regards
Dave