727 band questions, somethings weird, help

The band is new. I guess I don't know the difference between kinds of bands. It is seated correctly as is the strut.
This trans was rebuilt several years ago but something went wrong when it was put in gear and was it taken out, I got it for free. I'm confused as to whats wrong here. It seems like the strut could be about 1/4 inch longer and it would be fine. I was thinking of making my own out of some cold rolled steel. But I'd still like to know what the problem is.