Inspection of a 904 torqueflite

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This is all the ATSG manual says about it. -

When I did this .....I got .051.....
What I would guess is that it means it’s within spec. I wonder how much Babbitt material has worn down on this thing.

When they are completely rebuilt with new thrust washers. What does the spec usually read. I’m guessing .030 total.
When you push the input shat in and out, it is bottoming against the output shaft when pushing in and bottoming against the back of the pump when pulling out. The pump position cannot move, but the output shaft position can move slightly. If it is not in the correct position it effects your indicator reading. Standing the trans on end simulates driving the vehicle. The output shaft is pushed forward.
at times..it is a more accurate reading to stand the trans on end because it's own weight will push the output shat all the way forward. Having said that, the trans is probably in spec.