1977 904 horsepower limits?

It depends on how well the 904 is built. A properly built 904 can handle up to 500 hp. Use high quality performance clutches and bands and you'll be all set! 65'
yes, built they do well. Perhaps list brand/part number for the clutches/bands you are talking about incase the op should decide to freshen up the 41 yr old tranny?