James, I have seen this many times. Who ever done the trany, did not get the clearances right. The way you described the scoring fits it to a T, NO PUN. Even if the parts were all good quality. When the triple gear bushings seize on the triple gear shafts, they start turning in the gear, and will wear fairly fast. They then will go tapered, and wear the gear teeth as sharp as a knife on the ends. Jack, John, and Adam, are right, on oil clearance, no clearance= scored bushings, they are not as forgiving as babbitt. I really don't think the oil amount was wrong, as what you have there, would have happened regardless. Now Brent is very correct on the clutch pack. You can't wait until the clutch is slipping that bad to adjust it. If the clutch was that bad, a 1/2 a turn was NOT NEAR ENOUGH anyway. It would have been closer to 1 1/2 to 3 turns depending. A builder I know, sent me a bunch of pictures of a T engine that they just got in, that had very few miles on it. The motor block was recently done by a well known Model T God = cracks in the block, pistons to tight, scored, cylinders bored at an angle to the crank, rods out of alignment, ((( this happens very often, as some shops have old wore out boring bars that sit on top of the block, and bore the cylinders at a slant, as the boring bars bottom is not true any more from from being slid around on its hand scraped surface of the bar. If the top of the block has been surfaced from previous top resurfacing, and is not true to the pan rail, a top mounting boring bar will not work anyway.))) hard seats were way below the surface of the block so when they surfaced it, they wouldn't loose the carbide teeth out of their surfacer head. They had the whole engine plastered full of that TIME SAVER , even was bad inside the rebuilt Trany. Now the Transmission was rebuilt by another very well known Model T God, = triple gear bushings all spun in the gears, but this was a little different deal, as they must have been bad the first time, as they tried to solder the new bushings in the triple gears. The flywheel was cracked on both sides of each triple gear pin about 2" long each. All drums were cracked, Tail shaft was cracked in the rivet holes, boys when these bad parts come up through a hogs head, they are not good for a guys foot connection to his leg bone. The flywheel magnet plates were also touching the magnet coil. That is only part of it, but I am tired of the two fingered typing, thanks Herm.