Before you drop that tranny, get the TCC wired up properly. I just finished the same swap as you and that was the last thing I had to fix! Now it runs/shifts great. It was doing the same as you described, gears would not engage and grinding when placed back in park. I can take a picture of how I wired up the brake switch tommorrow if you like, it was simple once I figured it out.
1993 GMC Yukon 2dr 4x4, 6.0L/4L80E swap, Wheatley Tune, 3 inch Magnaflow true duals, 6.5 inch Dick Cepek stage 1 lift, 35's, 4.56 gears, front Posi-Lok.