Doc, thanks a lot.
That's exactly what I wanted to hear. I'm thinking maybe I put the big concave spacer in backwards into the K-1 pack. I know the clearance was more than I expected with new friction plates, but I wrote it off as poor measurement methodology on my part. I'll ease back in there and check all those things you mentioned.
For me, it's a relaxing hobby to work on this old car, but I think I have enjoyed all the tranny fun I need for awhile!

Tks,
DG