I'm thinking the torque converter is not fully pushed into the trans. The converter should be in about 2 inches from the face of the trans bell housing. Try rotating the torque converter while pressing in with firm pressure. There are notches on the converter that engage the front pump within the trans. Once trans is bolted up, you then pull the converter forward to bolt it to the flex plate.

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81 300CD (sold) 1972 280 SEL 4.5 (sold) 1966 250 S 4 spd (sold) 1974 450 SL (sold) 86 BMW 325ES (sold), 1973 280C (sold) 1988 300 SE.