So finally got the engine out and yes it is the thrust bearing . Unfortunately it damaged the rear (front facing) thrust surface on the crank . Fortunately everything else looked very good. I dropped the crank at the machine shop today that is helping out with things and he informed me that part of repairing the thrust surface will be having to cut the mains down . Not happy about it but so far folks are telling me its not a big deal and wont really effect anything . The crank will be magnafluxed , the rod journals will be checked and checked for straightness.

I have searched threads here to shine light on what happened and most threads indicate trans / converter / trans pressure issues . The trans will go out next and cooler and lines will be checked.

Is there any way looking at a converter to tell if it has ballooned?

Am I missing anything?

FYI
This happened after about 80 passes . Previous rebuild was at 125 passes and all bearings including thrust surfaces looked great . The 125 passes were with King HP bearings at .003 . The 80 passes were with King XP also at .003 clearance .

Thanks Moparts