727 transmission dilemma.

I thought the same thing until I opened it up again and discovered that the condition went away when the clutches were removed. My next thought was that a clutch was stuck for some reason , but not so. It seems that the overrunning clutch is part of the driven components and splined to the planetary. It doesn't appear to be in play until the components in front of the output shaft (ahead of the snap ring) are installed.