You are right. Those really don't look that bad... the mis-ordered clutches/steels probably is from the factory.... after all, they are hand assembled. Would that cause your issues though? Probably not.

 

I didn't feel that was the problem but found it just odd. You can see though the friction looked darn close to new condition. They even show the cross pattern. This tells me pump, converter or valve body. One or more is the cause. I have found not any signs of material (Metal or sludge) with in this whole transmission. Other than two retention snap ring being broken ( known for this) I am thinking after everything is replaced. This should make enough years before it will need anything.
I did notice they changed the one gasket part to two parts. The seal between the overdrive and main case was a one piece but kit comes with two. You ca see it here.

After market are know for the two piece gasket.
I was reading once I am to the point of installing the rebuilt converter. It says to prime the converter with 2 quarts of fluid. I must say not only am I enjoying this experience but learning a lot. I'm in no rush and slowly getting there. Yeah, I know I weirdo. lol

 

I am waiting on my new trans oil lines from Rock Auto. It's crazy the shipping ran about the same as the cost so in the end it was around $90+ total but still cheaper than local. Since trans is out. This is the time for some good cleaning and o2 sensor replacement. Getting what I can while I have the room in there. .
As you can see in the pictures the red clay is being stubborn about coming off. Even with my pressure washer doesn't seem to be taking doing much to it. I did engine de greaser. I am going to try oven cleaner on the outside case. Hopefully this will achieve removing it so I can have a nice clean case as I get ready to start assembling soon. I will post results after.

 

I couldn't see any problems or unusual wear. Make sure you tear the overdrive down too I had burnt clutches. On the valve body when you take apart, make sure every little piece of dirt is out of it. I don't use Rockauto in most cases because of the shipping prices. Look at the torrington bearings too. They are the flat roller bearing.

 

Everything is torn down other then valve body. All the friction look great. I was really surprised with a 166,000 miles on it. No wear signs hardly. If you to zoom in, you would nest to no wear on them. I have checked all the bearings and they are smooth as can be. I was expecting worse. That was why I called the thread as is. I just figured it was time. I will be working this week to start the process of cleaning each section for rebuild. I have to order the converter this coming Friday.
I agree they aren't cheap on shipping but this still worked out since one line local or even Amazon are running around $75 buck or more. Thanks guys. Will update as it goes.

 

Ran into a snag with overdrive. I got smaller bolts for my jig that I used to compress the spring. It seems I will have to go down another inch in size since its barely getting in there to do it's job. I did get it in but noticed that it would press at a point. Released it and was looking to find why? Well this is what I am seeing. I don't remember seeing any scoring before so I am curious if maybe I was off a little and did this? It is very light but my question is if maybe taking a high grit sandpaper to smooth out enough to allow the gears to work as intended. I took a pick and light pull and some of them just came off but I would prefer them to be smooth as they should be. I am posting pictures and getting some advice here. It's just enough that it wont allow the press to push it down.

 

I would seriously consider replacing that......

 

I'm not sure of the correct name but have looked and so far can't find one. I am thinking I somehow went in not completely straight and I guess you would term gouged it lightly. My press is small so even though I drop from 4 inch bolts to 3 1/s. I really didn't have the room but tried.I was thinking and it slide in fine before I went to cleaning and doing rebuild so it's my fault. Just have to fix it either way.

 

Might try a fine file to clean it up....

 

I didn't think of that. I can go buy one in the morning. I need to get some smaller bolts anyway. All I can do is try and if it comes out good, then ok, If not. Then I will continue to try and find a replacement. I didn't force it so my thinking is it very extremely light like a scratch. Being it's in the gears. I might get lucky. They are tight as heck with no play what so ever. If I can bump enough to slide by, I should be good. Thanks