I tore into my 700r4 and the 3-4 clutch pack was toast. Everything else looks new! I am using the red clutch packs and Kolene steels I got in a performance rebuild kit. The question I have is the forward clutch pack has too much clearance, more than .080, and the 3/4 clutch pack dosent have enough clearance, almost none. Is this abnormal? I have taken it apart and checked the assembly.

If the steels warped it will take up all of the end play that you had. Alto recommends tight clearances on the 3-4 pack. .015-.035 if I recall corectly. Does not take much warpage to bind that clutchpack.
Forwards are normally tight as well(per alto). Usually about .035 or so.

sounds like I need to get some new selective plates then.

Sometimes a fresh wave plate fixes a loose forward pack.

Is there anyway to check the wave plate to see if it is waved enough? I have access to lots of measuring devices and surface plates too.