Dave, instead of speculating what the line pressure is, why don't you measure it? An inexpensive $15 mechanical oil pressure gauge from Pep Boys will work in a pinch. NAPA sells a professional unit for about $70.
Line pressure at engine idle in first, 45 to 63 psi is normal. At idle in reverse, neutral, or park 64 to 76 psi is normal. The line pressure tap is at the back of the transaxle near the bottom next to the valve body cover.
According to Ford's CD4E troubleshooting chart Torque Converter Is Always Applied/Stalls Vehicle
- Powertrain control system electrical inputs and outputs, wiring harness, PCM, shift solenoids and transmission range sensor are faulty.
- Faulty main control valve body.
- Oil pump assembly damaged or leaking.
- Torque converter internal seals or piston plate are damaged.
- Transaxle case leaks from the clutch bypass circuit.
You might be on to something with regard to possible flooding. Have you done a Carfax check? You really need a shop manual to troubleshoot all the electrical stuff on this transaxle. Even if you were to replace the transaxle, a problem in the external wiring might result in the same symptoms. You might want to try unhooking the various connectors and spraying them with electrical contact cleaner. You could use a tiny bit of silicone grease on them before reconnecting them.