I listened to the air pressure test and over the internet it didn't sound like a massive leak to me. I've noticed that teflon rings don't seem too seal all that great when doing the air pressure test. IMO it sounded normal for having teflon rings. Even if the front clutch wasn't engaging I believe it would shift into 2nd gear as that is controlled by the front band and that servo applied good. Did you have the valve body all apart? If so is there any possibility that you could have got a couple springs switched around? I remember a couple yrs. back a fellow did that with the 1-2 shift valve spring and the torque converter clutch spring and it wouldn't shift out of first cause the TCC spring is a lot stiffer. If you didn't take the valve body all apart to clean it good there's a possibility that a piece of trash has the 1-2 shift valve stuck.