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Engine/Transmission (1994 - 1998) Transmission TC Lockup and OD shifting Diagnostic

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Engine/Transmission (1998.5 - 2002) nv4500

Engine/Transmission (1998.5 - 2002) Thrust bearing fail? Help.

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97 with 12 valve and 47RE for starters. I bought this truck with a bad transmission two years ago and found a torn lip seal in the front piston and a roasted front direct clutch pack when I rebuilt it. It was so badly roasted that I had to cut the splined hub off the stock input shaft to get the thing apart, which was a good excuse for a billet input shaft upgrade. It had a "Garmin" converter in it and somebody had been been in the valve body as it had 100 LB line pressure at idle and around 170-190 at WOT. the line on the gauge was too short to get a good reading while driving, but it had plenty pressure for me, and shifted quick and good so I called it a success. 4000 miles later out of the blue it starts stalling on me when I drop it into gear, and with some simple diagnostics came to this summary:

When first started will stall engine when dropped into gear. Even Reverse and low. Even if you give it more throttle. When you drop it into gear it pulls down 100 rpm or so with what i call normal TC loading then, about 2-3 seconds later will just kill the engine even if you get on the throttle, just make more smoke as it dies. Guessing the TC is locking, only explanation. After you cycle P, R, N, D a few times and bump it back to N before it dies it will stop acting up, but when you drive it there is no TC lockup, the shifts are lazy (actually get a 200 RPM increase with constant throttle position between gears) and OD is intermittent and seems to shift if and when it wants to.

After doing a good bit of reading I am thinking APPS issue, maybe, with both TC lockup and OD acting weird, but even with a totally trashed APPS it should never lockup in L or R right? So the next thing I read was TC lockup solenoid but that would only explain the TC acting weird and not the shifting or OD? What am I missing? I am pretty good mechanically but when something electronic starts acting up I get frustrated pretty quickly. I will certainly appreciate the help putting the pieces together on this one.
 
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