Just an update. I replaced the oil in the tranny this last weekend after about 500 miles. There was very little of the shavings on this time around. Also, after the first time I changed it out the shifting was tons better. It still stuck a little going into second and third but light years better than before. Now that I have changed it twice its even better. Not as dramatic as the first time but better. All this was done with O'Reilly cheapo oil. In about 1000 miles I am going to go back in with full synthetic then leave it be.
1983 Hunter Green CJ-7...R.I.P.
1994 Hunter Green XJ 4x4 4.0L H.O. 2000 Midnight Blue TJ Both Sold
2003 Black WJ Laredo Work In Progress