904 has no first gear?
Finally got to the governor and I am fairly sure that was my issue. The snap ring that holds the governor housing in place was not seated in the groove. This allowed the housing to slide back enough to bind the governor. Turns out the housing was a little too long for the new output shaft so I sanded a couple of thousandths off the back of the housing so the clip would seat properly. I cleaned everything while I had it out as well. It is all back together now and the governor moves freely. The engine and trans are still sitting on the floor of the garage so I will check back in once it is all back together and we have taken a test drive.