I didnt try the second valve body as when I drained the oil it was showing some metal in it so I decided to pull the trans and check the damage which I didn't find any. The internals were immaculate. I checked all bushings, pump, clutches, snap rings and seals. For the life of me I cannot remember off the top of my head as to what the clearances for the clutches was but it was within the tolerence range in the manual. All bolts were oiles and torqued to spec. I recently got my torque wrench calibrate and it reads perfectly. The weak point to me and the possibly cause was the used converter. My buddy is tough on cars so I have a feeling that the used converter I got from him contained metal pieces from his trans as my internals were perfect. I reused all internal drums and planetary gears. New bands were installed and torqued correctly and backed off to the required amount.
My new converter arrived today so I'll install it tomorrow and should have the car moving on Saturday. On Sunday when I tried to test drive the car it wouldn't give any indication that it was in gear until I reverse it to 2k and it would slightly move but felt like the brakes were dragging. In reverse it was the very same but in 1low it would move without feeling like it was dragging the brakes. I cycled through the gears and checked the fluid in neutral. Fluid level was perfect. I have a deep pan from John Cope installed with spacer plate. I put 1L of fluid into the torque converter before I installed it and when I filled the trans it tool 9.5L