Yes. The shop told me the same thing, that quick performance was being retarded, and I should send it. I mean who gives a s*** about a warranty on $100 gears anyway?
When I took the drums off and the drive shaft off there was turning resistance; it was not 20in-lb (by feel), but didnt spin freely. Backlash feels good (by feel). I could come up with a hundred excuses why I went in there, but it was my first build, I don't trust myself, and I want to install a non-leaking cover with a drain plug so I never have to go in again.
With the car already up in the air I've changed the oil and greased everything. Make sure everything's tight.
I think I'm going to rebuild the old 7.5 as a 3.08 with the 26-in spline and Auburn posi on hand for the '78 Olds 3 speed - that will only cost me time, oil, and $100 gears.