IMO,
the ".040" on the dot MUST be that way clearance is not necessary.
You MUST have a minimum of .040 to prevent dragging of the clutches in gears other than direct, but the difference between .040-.050 in apply time is pretty negligable in a performance calibrated trans with the feed holes opened up.
I wouldn't be afraid of anything from .040-.060". The only advantage I can see of trying ot set the same exact tolerance everytime is to get perfect repeatability with the same orifice size, etc..
And again not really THAT ritical.
Same deal on the band adjustment. .040-.060 will work fine.
Biggest thing is you don't want a huge sloppy band clearance and a huge sloppy clutch clearance.
When it goes from 2-3 it COULD cause a shift flair due to bad shift timing caused by WAY excessive clearances.
It's also a critical shift to time on a 700 because the band has to release and the 3-4's have to apply. And both are known weakness's in the 700, as both tha band and directs are known weaknesses in the 200.