Ok guys, first off THANKS to all of you for your help.
I was able to put a voltmeter on the dash hooked into the solenoid. I get:
1. Zero volts with key off
2. 12 volts with key on in overdrive
3. 0.44 volts when it kicks down into "Auto-Drive" (Red light on controller)
4. Zero volts when I kick the floor switch and all lights go out.
I believe this means that the controller is doing what it is supposed to.
Next I put 12 volts directly to the solenoid and it did make clicking noise as it should.
I pulled the pan off next. The drain plug magnet was covered with alot of black substance that feels tarry so when I dropped the pan I was expecting the worst.
It doesn't look too bad. In fact the screen is spot less. There is nothing on the screen at all. Maybe the mechanics that have been changing the fluid have just been too lazy to wipe the magnet off??
My camera went north with the wife for a wedding she is attending, so I have no way to post anything but cell phone crummy pics until she gets home later.
Nest I pulled the solenoid out and bench tested it. It moves a little, but I still can't see through the holes. How far should the inners move on this thing???