well, its quite possible that since both the PP and the flywheel are USED... that the step is COMPLETELY wrong now. the clutch system is designed to work within a small range of thickness between the flywheel and pp. on a fresh PP and flywheel w/ a proper step, the clutch will loose its clamping force as the material expends. the PP can only compress so far, once you lose the disc thickness, you lose that clamping force and thats why your clutch ultimately slips when its "worn out". alot of the time, the diaphragm and clamping force is virtually unchanged.
plus, hand-sanding the PP and flywheel isnt always a good solutoin. i mean, its hard to remove even a few thousandths of material from JUST sanding/honing/polishing by hand. but, the runout or thickness variation that results from anything but a Blanchard-ground surface can cause bad chatter and uneven clamping force due to lack of contact patch.
i would recommend getting a new friction plate for the flywheel and a new clutch. that would most likely solve all your problems since it sounds like it all stems from reusing old parts.
Btw, Duane... does your launching technique resemble an AWD launch technique? i really had to change my style when trying to launch my old AWD DSM. no clutch dumping or any of those shenanigans.