Bad Torque Converter 87' Mustang Gt W/aod?

I have a 1987 Mustang GT 5.0 with a mild built AOD trans. and 2500-3000 stall convertor and the car is only driven to and from work. Coming home from work, about 2 blocks from my house, I hear a mild thud, not a hard jerk, but a quiet thud come from under the car. The noise came from the rear I believe. Now, I have no drive or reverse. I have a B&M Hammer shifter made for the AOD Mustangs and the shifter is fine, goes right into park as it should and goes through the normal shifts as intended. I am wondering if my rear gears 3.08 went to hell? If that was the case, I would hear chatter coming from the rear axle. My u-joints are not the problem or the aluminum drive shaft. I am thinking the torque convertor died on me! Any input or advice will be very helpful. Thank you

If the 2 piece input shaft is broke, is it a relatively simple fix without pulling the AOD completely out? I did check the fluid and it's full to the cross-hairs on the dip stick, and a clean pink. No leaks under the transmission pan.TV cable?

I checked the rear pinion and all seems to be just fine. I came home from work today and found a huge puddle of dark red/gray colored trans fluid on the garage floor right under the transmission pan near the right front corner where the dipstick tube goes into the case. I took off the inspection cover and found that the two-piece input shaft has snapped! So, Out with the AOD and in with a TCI c4 trans.! The C4 is primarily for strip use but can be street driven also. The changeover should be a direct fit with a couple easy modifications. The new TCI C4 automatic with 3,000 stall will make the Foxbody like night and day compared to the AOD!

Yeah, I figured this was going to happen sooner or later, especially when the guy I bought the car from put the engine and transmission in from a wrecked 1988 Mustang LX 5.0 He didn't even put a shift kit in the AOD like he said he did, the only part that was hi-performance was the 2500-3000 stall converter he put , which is probably the reason why the 2-piece input shaft broke. I had already purchased the TCI C4 with 3000 stall, and the AOD is ready to come out. I may keep the AOD and have it rebuilt heavy duty with a shift kit and keep it as a back-up in case the C4 fails. For this reason, the overdrive will help me in gas mileage! Thanks again!