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Try changing the fluid and adding friction modifier then drive in a figure 8 about 10 times to work the clutches around.
That is kinda premature for a LS to die. Mine is still tight enough to drag a tire around a corner @ 66,000 miles and the one in my 88 5.0 LX Mustang still smokes both tires @ 161,000 miles.
yea if i take off at a simi crooked angle with moderate gas it will drag the tire, but if i romp on it it will just toast one most of the time. and in the rain it dosent sidestep any more as much...i dunno weird i will do the fdluid tho