A904 Hard 1-2 Shift and Reverse

Yes it is on curb idle now. Where should the slotted rod be located when at curb idle?
This is of little consequence.
What matters is that the WOT setting on the carb is synchronized to the all-the-way-back setting of the KD mechanism .... AT THE TRANS.
So then, with the engine OFF, you push the KD all the way back until it stops hard, and hold it there. Then open the throttle as far as it will go... until the pin hits the back of the slot. Now, if the throttle is not yet fully open, then move the slot by screwing it further onto the shaft back and repeat ... as often as necessary until you find synchronicity.
But if with the KD ALL the way back, and the carb at WOT, if you still have room between the pin and the back of the slot, this is not necessarily a bad thing., if the trans is already hard shifting. If you think you need to, you can increase that gap.
But in so doing, you are reducing the throttle pressure, and if it gets to be too low, you risk slipping the clutches and bands and ultimately, a trans failure. So when operating in this mode, you have to be sensitive to the symptoms of slipping clutches and bands.
If you get into this kind of situation, you need to look at the rest of the combo. Such as low engine power, wrong governor weights, or bad TC.
Ok, that's all I got.