use a guage to set the tv pressure. do a search.
tv is not why you have probs! if the tv pressure was off enough to destroy the trans, it would have happened. the direct clutch would be the one to go also, the clutches would burn up, and you would have no 3rd gear, or, it would weld together, and would be mechanically stuck in third.....and would kill the engine when you stop.
your od band is fried, in all likelyhood. could be a servo, could be a valve in the valve body.......but that just grasping at straws.
if you do rebuild it, youll need some special tools as well..... baby that sucker, and build a spare on the side if possible.
good luck