The solenoid is only there to give the LSJ's PCM the ability to dump boost if it needs to protect the engine. Since you don't have it, that nipple will need to go to the bottom port on the bypass valve actuator.
If I recall correctly, that diaphragm actuator is spring biased towards the bottom, or bypass valve opened position. When the throttle body is closed, both sides of the diaphragm actuator see comparable vacuum. When the throttle body is opened, the top side sees ambient air pressure, while the bottom side sees positive pressure, which reverses the position of the diaphragm actuator and closes the bypass valve so all the boost you're making gets stuffed into the engine. I would guess that without that bottom port you're not actually closing the bypass valve, so you're not getting to use all the boost you're making.
Then again, I have to re-figure out the bypass valve functionality every time I think about it, so I could be off the mark.