4R70W Problems

Hey guys.
I am in the testing phase of my V8 swap. I was driving it around, wouldn't shift into 4th (I think). It would just slow down hard (like you shifted into first) around 80km/h, but if I pressed the O/D off button it would be normal again because it would shift into what I assumed was 3rd. Checked the fluid...way low (worked its way into the lines, cooler, etc) so I filled it up. Ran, repeat, filled.

Then I drive it again and it was acting like it was overfull (because it was) once and awhile it was like there was air bubbles because it would push fluid out of the breather tube. Then it would be good. Then it would do it again. So I drove around some more and it still won't shift. I put it in 2 and it is no different than D, so it seems like it won't shift to third now

Drained some out.

So I think that the fluid is around normal level. Its hard to tell with a wet dipstick and clearish fluid. But still...won't shift into 3rd. At 80km's its around 3300 rpms. Way too high

I should say that my 4x4 lights flash (because I have a AWD tcase from an explorer so there is no indicators) and also switching from O/D on to O/D off does nothing.

Any suggestions? Please don't say it is blown. I have spent way too much time and money already on this