904 Trans Struggle Bus

As those cases age they get porosity in them. I would use the newer trans since your planing on a 318 anyway. Keep the valve body and only use the center pin for neutral safety. With the later trans you can then enjoy the use of a part throttle kick down valve.

For now have a machine shop turn down the converter register hub. They make a bushing to go back to a big register if you decide update the engine.
Is there a difference in the torque converters for the 318’s vs. the Slant Six? There is someone near me that has one from a 69 904 but it was a 318 car.