What are the symptoms of a bad torque converter?

Well I'm going to have to do that then! Because I was expecting more from this motor.

Would 4.10s be too much, because I think I can find a good 3rd member. I already have two, a 2.92, 3.23, but those ratios aren't high enough. Or can you swap the crown and pinion from one of those gears with some better gears?

4:10's might be a bit much if you're going to do any highway driving. What does your cam sheet tell you to get for a high stall converter? Send me a PM with your email address and I'll send you a spec sheet to fill out and give to your converter supplier. As it's been mentioned by others, right now you've got a mis-match and that's why things aren't working as they shoud. You can get what they call a dummy lock-up converter where the lockup piston is removed so no lockup occurs.