So here is what I found after disassembling and cleaning this "rebuilt, ready to go transmission" (as stated by the seller).
1) Missing accumulation valve spring, seal, and retainer clip.
2) Intermediate check ball in the wrong spot in valve body.
3) 3 or 4 burnt steel clutch discs, 3 well worn steel clutch discs (the fiber discs appear to be brand new).
4) Bad lower roller clutch assembly (bearings fall out of the carrier).
5) Badly scored reaction drum, the one which the reverse band rides on (the reverse band looks like new).
I have a question about the main shaft fit on the rear internal ring gear. It is held in place by a snap ring. It seems to have a lot of play in it. How much, if any play is acceptable?
I received the ATSG TH400 repair manual yesterday and I am going to rebuild this boat anchor. The book is pretty thorough.
As far as the guy who I bought this transmission from, I am going to allow Karma to take care of him, if it hasn't already. There is an outside chance that we had no idea it was this bad, so he won't be "bothered" by me.
Carl