Transmission issue! Need advice!

I'd bet that it'll be fine once it's cleaned out
It's way beyond that. Even a power flush of 50/50 ATF/Acetone ain't gonna clean that tranny out.
Drop the tranny.
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I would pull it, clean it throw a kit in it (they're cheap) and a reman converter also cheap. Pretty good chance all the hard parts will be serviceable.
 
I am pretty sure that much of the abrasive from the clutch packs is the grit in the bottom.
May get by for a while on cool days and minimal hills, but may be the OP’s winter project.
If you are some what mechanically inclined these transmissions are not that difficult to rebuild. The key is a FSM, clean area for re assembly and an inch lb torque wrench. Don’t forget to flush the torque converter during the rebuild.
 
Anyone got a ball park price for a rebuild these days? Maybe help the OP make a decision.
 
my '68 727 was around $1500 at my local shop
 
Was that in car price or just hauling the transmission in already removed?
 
I think the kit is less than $100 plus bands and about $150 to get converter rebuilt. $20-30 for bushings. $10 brake clean 1 for the cooler the other for the inners.
Doing it yourself priceless.
 
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