What does the bore where the sealing rings set in the main case look like, I have seen damage there that allowed oil to get to ports it was not supposed to. I have seen them sleeved and repaired , one thing that strikes me is I have had this happen years ago when first starting out, it is possible to install the snap rings and the splined washer in the wrong sequence and not get full release on the clutches if so this could account for the slippage and smoking clutches, the OEM service manual is not very clear on proper installation.
On the Rockford unit lube pressure comes in back of the clutch pistons to collapse the pistons away from the clutch pack. The valving is pretty simple and straightforward and I do not believe the problem to be valving, I would check charge pressure and operating pressure with the shuttle in each position, good pressure in neutral and low in F or R would indicate a leak. I believe that the converter charge pressure is also lube pressure and MAY be able to be observed with the pedal depressed on the main pressure gage on the dash, IIRC it will be up above the bottom a quarter inch but you can install a gage in the small regulator block next to the main shuttle control valve, they have been know to stick but most often open rather than closed showing low or no charge pressure.