I have a 1994 w/ 302 and E4OD with 127k. I got a blinking light on the column and HARD shifting from 1st to 2nd. Dropped the pan and holy moly the pan was filled w/ shavings. Couldnt see the mag. and the screen was clogged. So new screen and fluid, drove for 300mi max and then had a torque converter flush done. No code ran great. Now I am getting the blink and hard shift again after only 900mi on the new fluid. (I only drive on weekends with this truck) Any ideas? Is my tranny going?

 

The blinking light indicates that somesensor is not reading the expected values. The drivability problems may or may not indicate damage, the pan full of crap certainly does. I'm guessing here, but your transmission range sensor may be malfunctioning which could cause the hard shifting and the malfunction light. The actual malfunction which it caused gave you the pan full of crap. You're looking at a rebuild sooner or later, probably sooner. All that stuff in the pan used to be either clutches or bands.