I didn't replace any bushings when rebuilding. I will test the pressure. I didn't use assembly goo but I used transmission fluid for everything.

 

Maybe, just maybe it could be the EEC.
Does your old 1996 F-350 7.5L V8 E4OD solenoid pack have the DIODES in it? If it does, does your new pack have them?
Old style vs new style.
If your old pack has them, you need a solenoid pack with them.
If you use a solenoid pack without the diodes, you need an EEC that has them.
Using a solenoid pack without them when you need them, will cause EEC failure.

Also, some trans filters fall out, as they are pressed in.
​​​​​​​Did you notice if your filter was in properly last time the pan came off?

 

The filter was pressed it properly, though a little saggy. The old solenoid pack has the diodes and an exposed pcb, the new one I am not sure if it has the diodes, I believed i compared the two and thought they were the same but the new pcb has a cover on the top of it. I can take a look at that when pressure testing, i also have a third one that came with the valve body and accumulator body, so that could be the one I need. But the problem was present before changing the solenoid pack out.

 

Did you replace the front pump?
Inspect and verify clearances?

 

I did not replace the front pump, I opened it up and did a visual inspection then put it back together.

 

No, that is totally opposite of what I would expect from low fluid.

 

Okay I did the pressure test on the transmission and these are the results:

P: 60 psi
R: 30 psi
N: 30 psi
D: 60 psi
2: 60 psi
1: 60 psi

Could this indicate an internal leak like a seal in a piston or a leak in the valve body?

Also should there be ATF coming out the pressure port when it sat for a while and before turning it on?
and my ATF level reads way above full when the truck is turned off, is that normal?

 

This is the link to the engine shuddering video I uploaded to my YouTube account

 

Reverse is very low. That indicates a leak in the reverse circuit. It could be a clutch seal, or something along the way to the clutch. I can't remember if reverse pressure goes through the feedbolts. If it does, a loose feedbolt could be the problem. The feedbolts are located between the valve body and the case.

 

I tourqued those down to spec and the new ones came with loctite on them , but I will double check when I get inside there to do the air test. I am pretty sure I tested the reverse piston which worked before I put everything else back on and it was dry. My transmission was overheated before I got it and that was evident by the paper valve body gaskets since they were stuck to the valve body, so I got a razor blade and scraped it off, so there could be some knicks in there, maybe I will try to tourque things a little tighter than usual when i go to put it back together after air test. But would a leak like that be a huge problem? I should double check the check ***** too, I had some different sizes and the document I got labeled them as either BS or CS i believe so I was not sure what size to put where but I had enough big ones for all the locations, I checked them recently and none fell into the accumulator body.
But the weird thing is when the fluid reads low reverse seemingly works with a slight delay instead of requiring higher rpms. I was going to try to fill the tranny to the line while cold and off to see if that yields a better result but I had to leave before that.

 

Don't fill it cold.