727 problems

dstan said

I had the tranny and torque converter off. I didn't see anything that looked wrong to me, but I am new on the car scene. It has a +2 oil pan and I had put 6 or 7 quarts in it. I'll try running it in neutral and see if it leaks once the oil is pumping.

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The fluid always pumps, but it just doesn't circulate.
Any time the engine is running so is the pump, so even though fluid isn't running through everything like in neutral there is still pump pressure.

Low fluid can cause aeration of the fluid and it can foam up causing it to come out the vent.
A bad seal between the seal and the pump.
A cracked converter snout
A crack where it is welded to the converter body.
Loose pump to case bolts (but you had it out and back in)

Those are the main possibilities.