Time for 727 rebuild.

I like a wavy snap ring in the front drum to make the reverse engagement softer; unless you have a stall converter. Those come with usually a thick washer and a thin washer between the drums and at the pump; so I usually run two thins at the pump an a thick between the drums, or you could get a thicker button for the front of the output shaft. Maybe run three thins altogether with no thick; might get you down to .040 end play. But only put one thrust between the drums. I like a little more clearance than .032 in the forward clutch; like .050