Trans pan gasket..sealer or no sealer?? and other trans ???

Well fishy, it slips in low gear, but not if you are backing up. It revs right over the trans until you let off and then will move about. I did go easy on it and it did shift through the gears but you can't just take off.I pretty much know that the outer band adjustment is for the 2-3 band and that's not going to have an effect on the problem, and that the trans will probably have to come out. As for the mud in the trans...yep, there was some!! Not what I would call a lot but definetly more than I wanted to see. There was a round magnet in the corner of the pan that was covered in mud, and when I tried to wipe it clean was very reluctant to come away from the magnet. It had magnetic properties and I think there was enough mud in the pan to conclude that the source is probably the band and that a rebuild is necessary. Unless the Mopar Gods (or you) can come up with some suggestion or miracle fix, I think this trans is toast!!

I let the trans warm up, took it through all the gears, went around the block, came back and checked the fluid level, right on the money!! I don't think it's a fluid level problem, but I'm gonna do the same thing again before I do any yanking out of the trans. I have another 66 trans, and I'm not sure this is a 66 trans in there as it has a replacement 1971 motor. Could this have any effect on the trans if it is a 66 trans hooked up to a 71 motor?? It is a floor shifted car and the bracketry looks to be original, but the motor is definetly replaced. Thanks guys for all the input!!! Geof
How does it take off in manual low? If it's ok when you do that, it's a clutch pack that's worn out.