Rebuilt 904, no 3rd gear???

ok i pulled the trans pan and the valve body. i noticed there was a piece of a teflon sealing ring...these teflon rings came from the rebuild kit, and i used those instead of the steel ones that came off the trans originally...

I think from my memory, these seals were from the front pump to front clutch pack in front drum...?? which is odd because reverse worked. also, there is no distinct shifting feel at all from 1st to 2nd when you run it in drive.