WTF 727 troubles--EDIT may be fixed

OK, finally got 'er on the hoist THE FRONT 4 BOLTS fell out?? of the pan. Somehow it managed to lose a bunch of fluid without getting on the exhaust or even making that much of a mess on the bottom.

So that was the leak.

That's amazing it didn't drown the whole under carriage. You got lucky you didn't have a mess to clean up.
I guess the other troubles were a combo of low fluid/ aeration

I got busy and installed a used Cheetah manual body I bought, so questions?

Any way to soften the BRUTAL 1-2 shift?

What ratio front band lever do you have in it and does it have the spring under the accumulator? I'm not positive if the spring will even do any good with the cheetah VB but I know taking the spring out and blocking the accumulator on a stock VB makes the 1-2 shift firmer. Might be worth a try installing a spring. I asked about the lever because the higher the ratio the firmer the shift. I believe Cheetah VB's call for a 3.8 lever.
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With the 389 gears, I MAY just elect to start mostly in 2nd for "driving."

Next, there is a FRACTION of a second of 2-3 flare. Not even a quarter second, I'd judge, just enough to tell that it's "trying" to rev between 2-3. Shift seems nice and solid.

Did your trans. have a shift improver kit in it to begin with? If so was there a restrictor driven into the case that feeds the front clutch? If so removing it will allow the front clutch to apply quicker.
Last question is (and the destructions SAY this) there IS NO compression braking in first

Does the mean that the "first gear burnout" situation is a no no?

Correct. No low gear burnouts.