Any movement in the brass ring is bad news. They are pressed in and staked in place. The steel ring has some normal movement as it engages over the energizing spring. I specialize in the later SM319 Muncie overdrive transmissions but don't normally do much with the early torque tube units. I'm sure the manual for these transmissions is online. Someone here can likely lead you to it. The internal components are similar to those used on the 55-59 cars and trucks. Those manuals are available from aftermarket sources.
One of my parts sources here locally is Waugh Transmissions in Santa Fe Springs, CA. 562-693-0855. They are experts in these units and rebuild the synchronizer units as well.
Fred
