e4od torque converter problem?
 

hello, i recently bought a 95 f250 psd with a e40d. im not exactly a expert when it comes to transmissions, but it has 240000 miles and it seems like the trans is starting to go. what it does is in every gear except o/d it seems like it slips and then around 45-55 mph it will lockup hard (drop about 300-600 rpm). there is also a scraping/loud whirring noise like there's a bad bearing around the tc/flex plate on the trans. the noise gets progressively louder as the trans warms up with no noise at startup and lots at operating temperature. it makes the noise in every gear including park and neutral until the tc locks up in o/d. when in o/d with no noise if i let my foot off the gas going about 60 mph the rpms drop to a idle and the noise comes back. after about 5 seconds if i reapply gas the rpms go up to about 2000 then drop down to around 1500 with a jerk and the noise stops. during normal driving it shifts a little late and sometimes very hard. also under full throttle the noise stops after 1st gear and only comes back during shifts. when i changed the fluid there was only about 2 quarts and it smelled burnt. i topped it off and nothing changed. i also did a slip test and it only revs to 2000 rpm. when i first got the truck the o/d light was flashing but that went away in about a day of driving. im just wondering if my whole trans is toast or the converter just needs to be replaced or something else. any input is appreciated.