Well the thrust bearing is for sure wiped out of your engine.

 

most definitely. This engine has been always been a lemon. Now it's time to decide on how to proceed.

 

well at least you found something wrong

 

I just wanted to post an update to this thread to inform everyone of what I found the problem to be.

I should not have been able to put the trans in the car since it was 94-95 trans with a 83 bell housing. I was able to install the trans because as I put the trans in, the inner bearing sleeve separated from the pilot bearing and slid back into the crank. Thus allowing the trans to go in further than what it should. I checked my old block and noticed that the bearing did the same exact thing too which ultimately lead to the thrust bearings failing.

So Lesson learned!.... Know the year of the transmission you are using. Only use a 79-93 trans with a 79- 93 bell housing. Or you can use a 94 - 95 trans with a 94 - 95 bell housing, but this will place the shifter back 11/16" in the trans tunnel. In my case I was using a 94 trans with a 83 bell housing which resulted in one blown engine and me having to by a new trans and engine. Never use the trans to bell housing bolts to “bring” the two together. Everything should go on easily.

What turned out to be a $2,500 get-her back on the road for some fun, turned out to be an $8k head ache.