I couldn't get the piston out with the apply lever on, I tried 6 ways from Sunday and it wouldn't come out, not saying it can't be done but I couldn't get it.
I agree the proper way to get the apply lever shaft out is to pull the OD unit off. BUT all that is holding the shaft in is a little piece of aluminum casting that sticks down from one of the bolt bosses on the OD unit, blocking the pin from coming out. So...I took a file and a chisel and knocked it off...I was then able to tap the shaft out and get the apply lever off.
The seal on the rear band piston was TRASHED! Half of it was missing and what was there looked like a pack of dogs was chewing on it so I think I found my problem. I used a Superior Transmission Super Servo kit that has a better piston design and seal.
I appreciate the info on the front drum seal but hopefully this will fix the problem.
Now I have the problem of the shaft working it's way out because I filed down that boss on the OD unit, but I'll make a bracket that bolts onto the boss on the OD unit, that has a 90 degree bend that will but up against the shaft. It will work fine because all the load on the shaft is at a 90 degree to the shaft, not axial. I know it's a hack fix but it beats pulling the tranny and getting involved with all the boogeymen that live in the OD housing.
I'll update you guys when I'm done and add pics