frank, i think you're right. i went to a wrecking yard that specializes in mustangs, A & M Wrecking, in Rio Linda, and the owner, Jeff Guy, couldn't be more pleasant and informative. we talked about the possibility of a shim or spacer....he gave me one, but didn't think that it was the solution. he said that he didn't remember fords needing to be shimmed. anyway, he brought up this torque convertor issue and i do recall that my buddy had a hard time seating the convertor. he did recommend that i pull the trans and check the convertor to see if the flange is "squished", indicating that i was forced into place. so....thank you all again for all the awesome tips. i was hoping to not have to pull the trans, but i'm going to have to do it anyway and restart. i'm also concerned that my flywheel may be bent or that the forced convertor may have damaged the pump. wish me luck. i'll try to take pics.