So My fresh 727 and freshly tightened converter would go forward in all gears including 1, 2, 3 neutral and reverse. This is in my race car. This is a new motor combo, and motor has no more than 20 minutes of run time in the car, most of it idling. Did drive it around the driveway for 2-3 minutes tops.

Tore the transmission apart today. Heavy contamination. All the black contamination in the pictures picked up by a magnet. All components inside the transmission looked okay. Lots of contamination in the valve body that could have locked up a shuttle valve.

My transmission guy says the torque converter failed. Does this make sense? Like I said - it never even hit the track.......