Over the weekend I installed my rebuilt 727 with a new converter. Before bolting up the converter, I noticed that there was not 1/8"-3/16" gap between the TC and the flex plate. The TC is in all of the way. The builder drew a line with the TC installed for my visual check. The TC is at this line.
I did not measure the gap between the TC and the flex plate, but it is darn near close to touching. The converter would rotate and was not dragging on the TC ears, but I could not pull/push on the TC to create this gap.
I am going to buy a 1/16" shim/spacer from the builder that mounts in between the transmission housing and the engine. This will give me at least the 1/16" gap that is his minimum requirement.

Have you ever ran into this issue with the TC all the way in? If so, how did you correct it?

Thanks

as long as there IS a gap .... and the vert will spin EZ ...I would not worry about it.

Pull it up and put your bolts in,you will be fine.If the converter is all the way back you will want to pull it up some so the converter hub don't rub on the pump stator.
Pulling the converter 1/8 is standard practice,but pulling it up 1/4 or more you will run the chance of pull it out of the pump lugs.

I assume the flexplate is on correctly ?

The flex plate is on correctly. There is a stamping on the plate that says ENGINE SIDE and it is facing the block.

Thank you all for the replies

Edit: I checked the gap and I measured .025" max with feeler Gage's. I am going to add the .060" shim-spacer between the tranny and the block. I am not comfortable with that tight of a gap on a new tranny. I am afraid that if there is any runout or heat expansion that the TC might take out the pump.

Thanks again for the replies.

I pulled the tranny and put in the A&A .062" thick spacer in between the tranny and the block. I now have a minimum of .082" between the flex plate and the converter lugs. I can now here the "thunk" noise when pulling the converter up against the flex plate.
The A&A spacer worked good except for a small tab that got in the way of my block. Once I flattened it out and once I got the side to side orientation correct, the spacer went right in. I found this to be a quick fix for not enough gap at the converter/flex plate.

I would have sent the converter back and had it fixed To late now I just went through this on a Powerglide to a RB motor, the old motor, different owner, had a 6 bolt crank in it and mine has a 8 bolt crank, the 9 inch Powerglide race converter drug on the flexplate, no end play at all I could have had the adapter between the crank and the flexplate machined down but I ended up buying spacers, both 1/16 and a 1/8, from Mikes Transmissions in Palmdale, CA. I used the 1/8 spacer and it has right at .120 end play now, just what Mike recommeneded BTW, I've bought and used a bunch of different brands and sizes, 12,11,10,9 and 8 inch race converters, 727 converters, never had a problem like yours

Rick Allison rebuilt my tranny and he has been using Dynamic convertors for a while now. He could not find a reason why I had this issue either except maybe the converter was longer than my TA unit that I pulled.
I did not want to send the converter back, so I opted for the spacer.
Rick told me that he has run the Dynamic converters with as little as .060" and no issues. He told me that as long as my gap was at least the .060", then he said that I could use this convertor. I am now at .080" minimum, so I finished with the tranny/convertor install.
Rick did say that this is the first 340/727/Dynamic combo that he has seen with this gap issue. He also said that he has seen the gap issues with sb/904/Dynamic combos though.
It is now fixed but I just wanted to share this issue with others just in the case it'd comes up with someone else.

Thanks cab.

can you push the car with no hang up or drag like before?

that was why you freshend the trans right? found no problem correct?

is this the same trans case with new TC?

I still have it up on jack stands to finish up the exhaust. Rick did not find any issues that would have caused the locking up in neutral but he did take care of some other issues that he found. This rebuild gave me some time to go through the rearend assembly and the brakes. I replaced all of the springs in the rear drums that were too loose.
Something in the tranny was making a howling noise at startup. Rick replaced the pump and gears due to some issues that he found. Either the pump assembly or the old convertor may have been that issue.
Yes, same trans case with new convertor.

ok good luck post results