Clyde, that sounds like it should work fine as described. I've got 2 questions though, that you may have already checked, but I'll ask them anyways:
1. is the pilot bushing seated in the crank or is it sticking out of the end some distance?
2. are you sure this trans came in that car?
The reason I'm asking is that after all you've done to check and recheck, there is a possibility that you have an interference fit lengthwise. I'm picturing 2 places where the problem may be.
First is the amount of shaft that is poking into the bushing. There should be a little telltale bit of grease on the shaft tip that shows you where the bushing rides. Basically, it should ride in the middle lengthwise of the tip. If the shaft is too deep into the bushing and rides on the shoulder, then it can't freewheel. Also, if the bung hole in the crank isn't deep enough, then the input shaft could be bottoming against the crank.
Second is the length of spline that sticks out of the trans front bearing retainer. Most of the car 3-speeds are all spline, and the trucks usually have a shoulder where the splines stop. If your disc needs deeper splines, then the disc cannot slide back far enough on the shaft to clear the flywheel when the plate is released.
Take a look at these areas for peace of mind, if nothing else.
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David
newbie #4153