By "testing all of the clutches separately" I meant testing each one, sorry for the confusion. The entire stack was assembled, clutches and all. Also, I'll have to go back and see what I wrote, but I didn't use 150 psi it was 100psi at Dave's instruction. Also, when I partially tested the clutch without the snap ring installed, I was using very low air...maybe 5 psi and the piston never got close to the snap ring groove.
As far as rolling a seal, there is no seal to roll in the second clutch housing. The reason I am leaning towards a bad 2nd hub is because of the original problem...no second gear. Now after the rebuild...no second gear. It was there at first, but slipping and got worse in a hurry. Since I added an extra steel to the clutch pack to tighten it up some, it was able to function somewhat until the clutches fried. Also, before 2nd gear originally gave way, the tranny was bang shifting very badly and was driven that way for a few months. The excessive pressure and slamming into gear could have cracked a weak weld in the 2nd hub, leading to the loss of 2nd gear. Also, during the air test, I heard a lot of air leakage in the second drum. I couldn't really tell where it was coming from though. Dave gave me better way to test it so I will be able to see a possible crack. I also plan to food color test it. If you don't know what that is, it's an old trick I learned years ago from an old mechanic. If he suspected a hairline crack in something, he would heat it up in the oven, then coat it in food coloring while it was hot (250° or so). After it cooled, wipe off the food coloring. The crack will be revealed as a line the same color as the food coloring used because it will seep into the crack. As the metal cools, it becomes trapped and can't be wiped away. It's a pretty neat trick actually.
Heck, I may be completely wrong here, but I'll find out this weekend when the tranny comes out again. I'll keep you posted as to what I find.