Hi Scott
Have faith and let the engine really soak for a while. Have you dropped the pan to look up at the conditions of the cylinder bores? Watch out when you drop the pan even after you have drained it there may well be two or so quarts of oil up in the dipper troughs.
Picture is of testing the nozzle aim on one of my engines but you can see the troughs hold oil. These troughs are also a surprise when you turn an engine over on an engine rotisserie think the engine is drained, only to have it pour out on your feet.
When you drained the transmission was there a layer of water? Or really milky looking gear lube? As to the layer of sludge to be expected if the transmission has sat without gears turning for any length of time. Looks good though can you spin the gears yet to see if all the teeth are there? All the transmission bearings are available.
Keep us posted
Cheers Phil