Yes, I drilled out the spacer plate, and I was not going to use the spring in the kit. I still wanted it to drive like a luxury car and all

I also got a new rear main ready to go in. I've also been there and done that on the converter not being seated... only for me it was on the th400 I did... I actually redid the whole thing because of all the pump gear pieces inside the transmission after that

The weird thing is, in the forward clutch there is a thicker steel that goes between the last friction plate and the thick retaining plate. It is 2.8mm rather than 2mm like the rest. My kit didn't include this, so I used the old one and my clearance is good. On the reverse drum, my clearance is about .065 where the max is .055. If I add an old plate between the last friction plate and retaining ring, like in the forward clutch, I get a good gap. The wave plate is in right, and the new drum matches the old, and the number of steels and friction is the same... and when I took the old one apart I had no burned clutches, but still a huge out of spec gap... and according to the manual, and the way it was before I took it apart, the last clutch plate rides against the retaining plate directly. There is no retaining plate available that is thick enough to get me into spec either... so I'm not sure what to do... leave the extra plate in, or keep the huge gap that seemed to work for 130000 miles before the low/reverse piston blew its seal...
Thanks for the advice!