[Jimmy58]

Sounds to me that you have 2 seperate problems... when you pulled the tranny did you drain the tranny fluid or did you pull it with the fluid in it? the valve bodies of these trannys are real sensative about dirt. they will stick and not shift properly. I would pull the pan and clean it then put a new filter on and then fill with new fluid. Add about a cup of Marvel mystery oil and it willhelp clean the gunk out of the valve body.
The grinding going into 4H or 4 L sounds like you need to index your shifter and adjust the linkage. the procedure is outlined in most of the repair manuals.
Just my 2cents worth.Good luck and let us know what happens and what you find.
Nick