Working on an automatic transmission is tough enough just to isolate the trouble from something external, easy and inexpensive to repair. I think very few of us here would consider "rebuilding" the AW without having full shop facilities including a biiig parts washer, and of course, the room to keep the thing once you've saved it.

I've done it. In a bathtub when I was 17. I had a good factory manual and access to some torque screwdrivers, but otherwise I didn't know what I was doing, and failed twice before giving up and getting a stick shift from a junkyard. The learning was stressful at the time as it was my way to get to work, but when I figured it was the convertor I needed, my perseverance ran out. Not likely I'll ever try that again.

Your thread is valuable because you did everything to pin the problem on the innards of the thing, and then acted on it. Thank you for posting back with the conclusion!

Only thought I have is someone needs that tailshaft bearing. :-)
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Art Benstein near Baltimore

Merry Christmas!