Try adjusting the second gear band. You might find that you can screw the stud all the way into the case. That would mean the the struts have fallen off. Then you would have to remove the valve body to put them back on. But the trash in the pan might have been the front band friction material; and it is just slipping. Worst case scenario; this sounds like a fairly trouble free rebuild. But the front drum might be toast if the band wore down to bare metal and scored it all up.
