As far as I can tell, it is seated as far as it will go. For the life of me I can't get it to go any farther. I have tried all of the suggestions I have heard, spinning it fast, slow, both directions, putting pressure on it while spinning it, and standing the trans on end, but the converter stays where it is, with the pads 7/8'' behind the bellhousing. There is a small amount of space between the converter and the back of the bellhousing, but it is only about 1/4 of an in. I think I'm just going to take it to the shop later and have them put the thing in and make sure I have't screwed up the seal, I'm too frustrated to deal with it myself.
Nick