Dont use the bolts to close the gap thats a big no no, im not saying that i haven't done that but definately ill advised. So back to your issue, is the converter properly seated (not hitting the flex plate) also are your guide pins lined up to the proper holes, your converter could be hitting the motor make sure it is still spinning freely if it gets wedged and you force the trans against the motor without the converter being properly seated it will crush the front pump. Did the converter make the infamous 3 clunks during install?