I have a powerglide and when my torque converter is pushed all the way in it locks up.. It will not turn only about 1/2" either way..

did you turn it as you were pushing i into the tranny to sline up all the splines?.
if so the move it out a bit and see if it turns, when it is attached to the flexplate it won't be all the way in the tranny.

yes i turned it as i was putting it in. it does spin when it is pulled out a little bit but i am not sure if there is enough space to bolt motor to bellhousing when it is pulled out enough to turn it. it turns after it's out about 1/4-1/2"..