After inspection, we found that the Carrier Bearing was the reason for the break down. Upon closer examination I believe the cause of the failure was the weld on the axis that caused the Carrier Bearing to fail. The original axis was shortened to accommodate the new transmission. Where shortened the axis and welded it back together was just inside the rubber housing of the Carrier bearing bushing. The weld was not smooth and had some really rough sections to it. I think this caused the rubber bushing to come apart and fail. You can see the marks of the rubber left on the axis as it was spinning. 

Dad used a grinder to smooth out the rough edges of the weld on the axil in hopes that the replacement wont fail quite as quickly. It appears that these are a common failure as Dad replaced 3 of them on his original Impala way back when.. Time will tell