Thanks for all the help, I've pulled an tried reseating the converter several times. It feels like it's seated, and with alittle shaking did feel it slide in alittle farther. It would be nice there was a space to get a mirror back behind the converter and see if it is truly seated all the way ;). Here's what it looks like, does this look right?
It sounds like you put the flexplate on correctly and with the fact you said the converter snout fits into and turns inside the crank I'm going for the fact the converter isn't seated in the transm. oil pump tangs.