help needed with 904

SAY WHAT !!??
I was talking about a transmission!

He said "reverse went out".

If ball#4 is missing then oil in the reverse circuit goes right on by the servo and dumps back into the pan at the manual valve. Since the pump normally is capable of pushing oil thru that circuit at full pressure full volume, to the tune of 260psi,or more,this circuit may still work, just very slowly and not a lot of clamp on the band.So the band slips and reverse "goes out". Of course that ball cannot escape by itself, so it would have had to be accidentally left out during a rebuild.
Some shift kits,IIRC* require the removal of a ball. There are 5 of 5/16, and 1 of 3/8. (EDIT: and one of 11/32),Perhaps when the shift kit was installed, the wrong ball got left out. But I'm not real sure about the leaving* out of a ball, as the last TF-II kit I installed was in the 80s.
Since the tranny is out, this is an easy look-see. While the VB is off, you can do an air pressure check and inspect the servo and band.
The seals should be fine.
About the only thing that might occur in long term storage is that the oilpan gasket might shrink, and crack.Some rust might occur on the drums, but that would be surface-rust, and would get wiped off at the first band application.On units that were stored pan-side down,I have seen some rust on the topside of the VB,accumulate sludge in the pockets there. It will stay there.I always store mine bellhouse end down.
If you want a snappy teener-car I highly recommend a 2800TC. It works good with 2.73s! I think actually, it makes the 2.73s sorta feel like maybe 3.23s, for at least several car lengths. Then reality sets in. But it's ok, cuz by this time you are doing over 20mph and probably closer to 30.
That 2800 works very good with 2.94s. Great with 3.23s.Double-really great with 3.55s. Triple-really great with 3.55s and an A999.
I think every teener-Moparite should, in their lifetime, experience a mid 70s low-compression teener with about a 10/1 starter gear,and a 2800TC, at least once. Maybe then guys would stop putting XE268s in 'em.
In any case, good luck in your game-plan.