I think my 727 is fried. Now I'm at a crossroads...

all the more reason to suspect aeration
With the transmission installed, it is a lil difficult to pressure test the case. And since Chrysler put the stinking vent almost right above the input seal, that can make the diagnostic a lil tough too. But I must say, those front seals last several hundred thousand miles.
you can prove the servos and clutches with an air pressure test, but in your case I doubt you would learn anything more than you already know, with your description of the oil.
Honestly; Ima thinking aerated oil
or the pump is sucking air.
A deep pan may solve both problems.
I've been tossing around the idea of a deep pan anyway, since heat is always an issue out here. I think I might try this first. Thanks for the input.

The clutch packs are no brainers as well... There's just a snap ring that holds them in and then it's just the pressure plate a clutch disc a steel a clutch disc a steel clutch dish a steel a clutch disc and then the piston on the bottom.. that has a lip seal on the inside and the outside of it. Just a lot of Vaseline and a plastic toothpick and you're good to go... Just like the other stuff you took out it's kind of self-explanatory when you take it apart...
I don't remember what I was reading when I was doing the 904, but for some reason I remember clutch pack clearances needed to be within some thousandths. I know enough to respect literature that says I need to do something within a thousandth, so that's what I did.