Alright, well I found 3rd gear.. Even cruised to the gas station.

It's still not shifting correctly however, and maybe that will change with some exercise. I had to hold in 2nd at about 3400 rpm (50mph) for a second or two before the shift happened. After that it held 3rd gear down to a reasonable speed, and didn't seem like it was slipping or anything. The other thing I noticed was it didn't want to shift back into 1st at a stop. The last several starts I made were in 2nd gear.

What I had found was the valve body was full of gunk. It had one of those brass filters and I learned the hard way not to use those. The 2-3 valve was stuck fast along with some other valves difficult to get moving.

There is still the question of where all this junk in the pan came from.. I had some concerns with the kickdown linkage, so I replaced it, maybe that caused a lot of wear. Or could the governor being stuck have caused a loss of pressure leading to this?

Thanks for your help John, I have learned a lot.