Time for another update.. been a while.
Finished the rebuild of both T56 transmissions. Much easier than I had expected. They both had the same 3/4 stamped key issue, and one had a sheared up input shaft (Ford input shafts only use 10 spline instead of the GM 26 spline.. damn OEM cost reductions!).
Car was not going anywhere with this shaft. Ebay $13 replacement will do the trick. I will not be running enough power to replicate this failure (not yet at least).

Ebay used press coming in handy..

New sycro billet keys and blocker rings installed and ready to go:

Measuring shaft preloads (since they use tapered roller bearings) and added shims to get 0.000 end play.

All done, cleaned up and ready to install:
Trans #2..
We bought this one from a guy in Ohio for very cheap.. he was fed up with the way it shifted and had brought it into the dealer to take a look. The dealer pulled it apart and found the stamped keys destroyed and pieces were all over the magnets (just like the other one we have). The blocker rings (shown below) were warn out and then some. Thankfully they did not wear down more or my gears would have been chewed up. At this point - I am guessing the dealer found it would be cheaper to just replace it, so they did. They quickly pieced it back together (leaving several key pieces out) and that is how we bought it.

Here is a pic of everything disassembled and in the parts washer. Still amazed they can actually make these thing work.