I am having trouble installing the Torque convertor. The FSM says to measure with a straight edge, and the back of that edge has to be at least 1/2" clearance. We can get only 1/4" clearance and can easily turn the flywheel. I see the two grooves that need to line up with the inside. But we don't have the tool the FSM says to use to line everything up. What do I do from here? Thanks.

As you spin the torque converter and lightly push it back, wiggle the nose up and down. Sometimes it takes a little playing with it, but the torque converter will eventually slide all the way in.

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Casually looking for a Clifford hyperpak intake for cheap.

Once it is in place, will the flywheel be tight, and we cannot move it? It feels like it is in place, but only 1/4 " clearance, and we can move the flywheel.

You are likely fine. However, you can still try spinning the converter while pushing the front of it up. It should slide back leaving lots of space between the flex plate and the converter.

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Casually looking for a Clifford hyperpak intake for cheap.

It is important to be sure that all 3 engagements are made between the transmission & converter.
The converter will rotate freely on the shafts, even if you do not have all 3 engagements.

A couple of suggestions:

It is helpful to stand the transmission up on it's tailshaft end, to insure the converter hub is going straight down & not getting cocked.
(I hang the trans off the workbench, with a hook, that goes thru one of the bell housing bolt holes)

With the converter out, make some visible marks on where the pump drive slots are on the converter & where the mating pump drive "blocks" are positioned, behind the front seal of the trans.

Count the engagements as the converter is installed... you can "feel" each one. The last engagement onto the front pump is the hardest one to get onto so use you alignment marks as a guide.

Once you think you have the front pump drive blocks into the converter hub slots, (the convert has made all 3 engagements) rotate the converter back & forth quickly & listen for a metal to metal tapping or "clicking' sound.
That sound is the smaller pump drive blocks hitting the sides of the wider converter hub slots.
Hear that sound and be assured that the converter is all the way in.
DD

Well, the tranny wasn't out of the car. When we pulled out the engine the convertor came with it, as we didn't remove those 4 bolts. I had to replace the front seal anyway. The flywheel was deep in there. Where the bolts went in, we were close to 1/2 inch. And when we put the engine up against there, it was deep enough for the engine to go all the way back. My stepdad believed it felt connected. I guess we will find out when I first put it in gear.