Rear clutch circuit fault (frictions burned up and/or seal blown) is my guess. Sounds like time for a rebuild. Since it's a mild 360 a swap to a 904 would be a good swap but $3000 for a 904????? JEEZ LOUISE! That's freaking outrageous even if it does have a lifetime warranty. Only way I could see it costing that much is if they supplied the 904 built with the best parts available including a high quality billet converter snout and did the entire swap/conversion.
