727 Time to rebuild
But you're talking .060 BETWEEN THE PLATES, not measured under the high point of the snap ring? And how does the ring surface inside the front drum look? AND can you tell from the edge of the rear band if it's worn or burnt? Just loosen it and move it around a little to see if the rear drum is burnt. AND how about a pic of the front band? AND is the band surface of the front drum smooth? Put all the thrust washers back the same way. We haven't found the direct clutch problem yet. You may have a seal problem in the direct clutch if the rings and ring wear surface inside the drum check out okay.