A variable force solenoid valve assembly is provided for use in an automatic transmission controller for controllably reducing a fluid inlet pressure to a desired outlet control pressure. The invention includes a variable force solenoid assembly secured to a valve body assembly. The valve body assembly includes a spool valve having three radially extending lands which translates within a valve body central bore in response to movement of an armature assembly provided in the solenoid assembly. Movement of the spool valve generates first and second flow restriction for controllably regulating the reduction of inlet pressure to control pressure. In addition, various improvements in spool valve design are described including a design which provides positive damping of the spool valve so as to attenuate "self-excited" oscillation thereof.