John,
There is no sludge. There is a magnetic pickup in the drain plug where you may find a thin layer of fine metals that can be wiped off with a paper towel. There are two flters with covers having six bolts each that get removed. The covers come down with the filters. That region of the transmission will drain close to two gallons and the drain plug will drain the other 5 gallons. Mine takes 7.5 gallons to do a change via the drain plugs and filter changes. Allison requires two changes to move to the schedule for Transynd unless you have someone flush the converter and cooler. There are torque specs for the plug and cover bolts, given these are aluminum housings, and if you use a torque wrench it will need to cover the 25 to 35 lb range. Specs are included with the filter kit. I just paid $37 a gallon for Transynd and about $45 for the filter kit locally in Pensacola. It takes me about 4 hours to do the change which I suspect is par for the course, 2X whatever time Garald takes.
Filling method I use.... I take several quick grip clamps and lock the rear hatch open by clamping them on the gas tube shafts. I have about a 4-5ft piece of 1/2 inch plastic pipe that will fit into the dip stick tube. That extends the tube to the back of the open hatch. I clamp a large funnel with a flexible tube that goes into the 1/2 inch pipe to the rear edge of the hatch. I bring this up given I have to gather this "erector set" to do the change. Easier than trying to pour under the hatch. This change is not difficult, just a bit time consuming. There are several O rings on each filter cover that gets replaced as well as one on the drain plug that come with the filter kit.
Later Ed