It is the correct non lock up converter. I did check the transfer case to make sure it is in gear.

In first and reverse the drive tran appears to labor and doesn't spin very free with wheels off ground

I get a nasty 'gnashing' noise when going into park and the rear wheels do not lock once in park.

I get first and reverse (manual first) only. No drive or second

I did not prime the converter but it took fluid at startup and trans was subsequently topped off.

There is a light whirring noise when in 2nd or Drive.