SUCCESS! Thanks to Paul's help, the speedo reads perfect now. At first I tried changing just H0135 (in addition to H0101 that was already changed before). This alone did not fix it, as we were showing 40 mph when actual speed was 32 mph. Then I flashed it with "plan B", in which I adjusted H0103 and H0122. I also changed H0103 in the tranny cal. This worked! We are now showing the right speed, it's perfect. Thanks so much for helping me fix this!
So the culprit was H0103 and / or H0122. Thanks !!!