The transaxle oil pump is driven by the torque converter. Sounds like the
torque converter did not properly engage with the oil pump, causing it to
sit "on top" of it and stick out 3/4". Bolting the transaxle to the engine
like this would wedge the torque converter between the crank shaft and the
oil pump. If the oil pump housing is made out of aluminum I would bet it has
been damaged and needs to be replaced.
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