Inspection of a 904 torqueflite

I wouldn't assume there is a low gearset in that group just because it has that shell with it. It very well could be switched; plus the fact that it was identified as a 904 gearset. Go ahead and think the driveshaft pushes the output shaft forward and that it's a good idea to set the trans up on the output shaft (I don't care who says to) but you are only repeating incorrect information.
I am in the middle of a refresh on my 904 right now. On my bench last night, I verified what the op has posted. If you push very firmly on the output shaft, your input shaft reading will very.
I believe the reason Rick Allison recommends to stand it on end is to use the trans own weight to get the output shaft all the way forward. I would call it a trick to ensure an accurate reading from a very experienced Torqueflite expert.
We are not talking a huge amount here, but it does move slightly.
I have no problem when people disagree with might posts, but please be courteous and explain why you don,t agree.
I agree the 904 parts could have been substituted, but usually when someone is selling a low gear set, you would sell all the parts as an assembly because most of them are required.