So about $1600 later, it sounds like the transmission will be done in the next day or so. Unfortunately they had to replace the torque converter, part of the transmission casing, and the overdrive drum; and new seals and soft pieces plus labor came to just over $1600. Hopefully we won't have to touch anything on the transmission for years to come...

The new heads for the motor arrived a few days ago and will be going to the engine builder in the next few days for assembly. Really excited to see both pieces come back together and be dropped into the chassis so we can finish putting the engine bay back together and drop the cab back down on the frame. 

One thing that I gleaned off the internet that I hope someone else will take a lesson from... We had the transmission crossmember blasted and powder coated. When we did that we removed the old rotted rubber bushings. Just about all of the bushings can be reordered for the truck... however the transmission bushing isn't on that list. 

I did however find someone on the internet who had a similar issue. Apparently the leaf spring bushing from a late 70's early 80's Chevy C10 will fit into the tube area on the transmission crossmember. So I ordered an original replacement bushing off of the C10. However when I went to install it, while it fit the tube hole, it wasnt the best length overall to fit into the mount area attached to the frame. There was about 35mm extra space that needed to be filled. 

After that I decided to take my own measurements and see if I could locate a universal polyurethane bushing that would do the trick. In the end I found that Energy Suspension makes the same bushing for the C10 and I could pair that with polyurethane pads to mimic the exact size and placement of the original bushings. They should all arrive in the next few days at we should hopefully be able to mount the crossmember without any issues.

Perfect fit!