I have rebuilt everything on this car it is sbc 2004r and auburn posi in a 8.5 10 bolt. When it down shifts into first there is a clunk from the rear end area. Any thoughts? Greg
Can you get the rear wheels up and verify the noise is from the rearend? If so I would be looking at the bearing retaining caps to see if they have loosened up on you. If the sound is actually coming from the trans, then there is a good chance that the shifter is not adjusted correctly, trash in the valvebody, low fluid pressure or even a busted fiber washer allowing too much clearance in the gear train.
When you rebuilt the transmission did you remove the spring in the 2nd gear servo? That will cause a 2-1 clunk. Does the clunk occur under power like going up a grade? Is a lift foot clunk like stopping at a light?