I installed the torque converter onto the transmission, but it doesn't want to spin freely, it keeps binding and you can hear grinding inside.

It should spin freely on the tranny, correct? Might have to send it back for repairs.

 

You've got 3 possibilities. Something is wrong in the transmission pump, pump bushing, or as you suspect...something is wrong in the converter. It should definitely spin free. Did you buy the converter from a reputable manufactuerer? You might want try reinstalling your original converter to see if you encounter the same problem.

Frank
CPT

 

I hate to say it but I think I screwed it up. In my haste to get everything done today I started to snug up the housing bolts before checking to see if there was clearance between the converter and the flexplate. I think I didn't get all the "clicks" when putting the converter on and ended up putting pressure on it. That's what I get for hurrying.

I'm going to try the old converter like you suggested.

 

Aaaahhh. I thought you had this problem initially. I didn't know you had tried bolting the trans. up. In that case, I'd say you've broken the pump rotor.

Frank
CPT