Are you sure Wes that there is a neutral position? When I had my 809 sprag out, there seemed to be only 2 positions (reverse and forward). I was going to document the entire removal and assembly but there didn't seem to be an interest at the time, so I didn't.
I remember one air line which acts against a spring for reverse. Your last picture shows one air line into the cylinder...is there a second to throw it the other direction, I don't remember one?
Keep in mind that the front and the rear (in the TC) have different gearing where the rear is always trying to overrun the front and the sprag relieves the difference in speeds between the shafts. Sprag is not intended to be used as a neutral and turn full axle rpm between the two parts. I don't remember lube that would handle that The difference in gear is something like 15/1 and 16/1 (not sure exact numbers any longer).
I can see why towing is a problem, since one side of the sprag is turning full axle rpm and the other side not turning at all...thus going 15 or 16 times it's normal speed.