My 318....Is no more..... :(

Since you found no traces of any metal in the oil and you have great oil pressure, I suspect the transmission pump. Have you listened near the pump on the trans? Did you check the transmission oil? What color is it now? Does it smell bad?

My transmission seemed fine. No burnt oil smell, it shifted fine, didn't make any noise, the oil is red like normal. I have not checked the front pump yet though...