Thanks again for responding Cliff.
The reason I used the lower air pressure was I figured if air leakage was the problem, then the clutches wouldn't apply with lower air pressure and I'd know that's the problem. But, I hear leaking, and even with low pressure they're applying anyway, which I didn't expect if the leaks were too bad.
I thought if I use high pressure, even if it leaks badly, the high pressure would overcome the leakage and make the clutches apply anyway, which would defeat the purpose of the test. But if you do it that way, I guess that's not the case.
During the rebuilding, I did do the forward and direct air test on the bench. I got a little leaking at that time, but the clutches applied so I thought they were okay. I was using higher air pressure then, and afterwards, when the transmission wouldn't shift, I was thinking maybe I used too much air pressure, which was overcoming the leaking and making the clutches apply in spite of the leaking, making it a false test.
Now, I have a better idea of how much air leaking is normal. I suppose even if the clutches apply with a bad air leak during a test, the apply could be too weak to work when the transmission is in actual operation.
So, I'll re-seal them and test them again. And I'll double-check the other things that you listed that could go wrong too. Thanks a lot for the help!