The torque converter cam out partially with the engine. With the torque converter out a small amount of ATF is flowing from the transmission. This stops when the torque converter is back in. Is this normal or does it indicate a blown seal. Could it be that the transmission is overfull of oil?

worth doing a lot of searching/reading about. I have no direct experience but, I suspect the fluid part is normal.

 

BUT, it's EXTREMELY easy to improperly re-seat the TC on assembly and crack the hydraulic pump.

Normal.

Lift and rotate the TC.

It should make two drops as you do this.

The tabs where the bolts go should NOT be more than a quarter inch (1/4) from the housing when fully seated.

If in doubt continue to rotate and push in.

A search may turn up some pics.

 

O.

AT and torque converter have tons of quarts of fluid in them, that's not a big deal.  Normally what you're describing isn't a big deal but we also have no idea what happened or what's going on.  

 

shouldn't be lifting the engine such that the TC shaft is compressing the sealing surface/edge of the seal.  It's unlikely you pulled it out perfectly flush, more than likely the shaft came out at an angle.  Since we have no idea how much angle or wrestling took place is there any chance the seal was damaged?

 

Check seal for damage. 

 

Or if the TC disconnected from the shaft then you'll also need to reseat the shaft and torque converter and make sure there isn't a spring clip floating around somewhere it's not supposed to be. 

and absolutely what he said - if you don't properly seat the torque converter you will ruin your tranmission installing the engine.  people do it all the time.  the engine flexplate and torque converter should not touch at all when installing - if that's happening do not force it, pull the engine out and reseat. 

 

the torque converter bolts and flexplate don't touch. you install the engine, there's a small gap, and the flexplate bolts draw the two together. 

 

with that visual in mind - you can pre-measure your flexplate distance from bellhousing and TC receiving bolt distance from bellhousing and make sure clearance exists as you continue to follow OCEI77's directions above for fully seating the TC.

Sometimes the flexplate and TQ rust and stick together which causes the TQ to pull out, it's not only because of misalignment. For that reason I always take a screwdriver or something and push the TQ toward the transmission to make sure it isn't stuck to the flexplate prior to pulling the engine.

 

As others have stated, replacing the front seal is pretty easy. Just make sure you go get one sooner than later. Dealers don't always have them in stock, I've had to wait a few days before.

http://i249.photobucket.com/albums/gg240/johnceggleston/TCfullyseated.jpg

pic of seated TC

 

O.

Oh yeah, I didn’t mean them being stuck together was due to angle. I just meant it’s possible and rather easy during an engine pull for the shaft to ride through the seal at an angle and bear weight on it.

I have found if you support the nose of the converter by the 'button' while trying to seat it, it seats much more easily.

Whenever I am ready to install an engine,

I put a small piece of 2x4 on the tall side(actually 3 1/2) under both sides of the tranny housing flush with the edge.

This allows me to catch the dowel pins at the same time clearing the engine mount studs so I can push the engine forward and catch a bolt.

After I catch all the bolts, I knock the pieces out and lower the block right into the cradle.

 

O

Make sure you have not dented the trans pan if you put a jack under it.  If dented  you may block the fluid pickup.

Jacking by the pan either blocks fluid flow or breaks solenoids/wiring depending where the jack was. I've seen both happen.