Hi Guys ,thanks for the replies here goes .
The driveshaft and flex plate are fine.
Torque converter looks perfect and the oil was clean.
Tranny filter was clear and very clean.
Modulator looked okay nothing broken.

So maybe those seals behind the front pump /(white teflon rings?) or something in the valve body (pressure relief valve?)
Tomorrow I will seperate the valve body and check out the relief valve .
To be continued :-

steve