Was sooo close....

"Rubber-like" material could be silicone RTV. That shouldn't be there. But if it's rubber of a well-defined shape, it still shouldn't be there, but it sounds like it might be a piece of lip-seal, and according to your description of reverse being ok, it probably came from the rear clutch piston, which is used in all forward gears.

Yea it was a little circular style rubber piece with a little piece missing... When I saw all the sparkle in the fluid I knew it was done...Lol... In a few weeks I'll pull it out. What's the best way to clean the TC?