98truck, I guess to some all this info up you need to have correct convertor(24 spline for 69 c4) correct flywheel for 88 302(157 tooth 50 oz) and if convertor has a drain plug make sure it goes through hole in flexplate and remove pilot bushing or bearing. You might just want to hold convertor against flex plate before installing tranny just to see if it goes all the way against the flex plate, and put a quart of tranny fluid in convertor before final installation, not mandatory a but a good idea. After tranny and everything is all together you should be able to move convertor in and out a little 1/8 inch or so. Hope this all helps, let us know so we can all learn as not every problem is the same. Mike
I don't believe the converter engages the back of the crank in any way so removing the pilot bushing should not be necessary. Assuming it's the correct size flexplate ... either it's the wrong converter (I've had the same problem years ago and took 3 converters to get the right one from the vendor) or the converter is not fully seated on the input shaft and pump.