i had the same problem when I hooked my 454 to the 700R4. Did the same thing with the th350 i installed this week. i was worried about it, but bolted it all together and no problems. It is strange though, my buddy has a 355 in his T/A. When we put a new convertor on his th350, the got it tightened to the block, there was NO gap between the convertor and the flexplate. Oh well....don't lose any sleep over it!
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85 Berlinetta Iroc exterior NOW 454 powered, 4.10 gears, 275/60/15 Hoosier Quicktimes freshly installed th350 3200 stall, shift kit, reworked valvebody, Megashifter, Biondo linelock ..........YES, it's street driven!
check it out at
http://www.bsronline.net