I have an 87 G.N.,180,000 miles, eng and trans never rebuilt, suddenly developed a serious convertor leak, after torqueing it up on the street, So pulled trans, put seal, still leaked, then later pulled and put 2800 stall convertor, and another seal,, still leaked, So started research on here, decided to put bushing too, pulled her again, fabricated a device to clamp on stator, pulled front pump, 
, and found the bushing had moved out about a 1/4", So put a new one, with locktite, reassemble,, and no leak!
Obviously, the bushing was touching the lips of the seal, when torque convertor was in place. Also drilled out the seal drainback hole.
I love this site, and am keeping my G.N. for the rest of my live, and I am 55, She is basically stock, except for larger turbo, K.&N. filter, Chip, and adjustable fuel pressure regulator, New timing chain, and bearings, When the chain failed, the trapdoor in the pickup screen lodged open, and she sucked up some of the chunks of the plastic coated cam gear, found some in the journal holes, also, after this developed a loss of oil pressure, and I found a chunk keeping the oil pressure regulator from bottoming, dumping most of the oil pressure, Needless to say, I put a pickup tube from Napa on, and now have a heavy duty chain. I recommend replacing that stock chain and gears before they fail.
, and found the bushing had moved out about a 1/4", So put a new one, with locktite, reassemble,, and no leak!Obviously, the bushing was touching the lips of the seal, when torque convertor was in place. Also drilled out the seal drainback hole.
I love this site, and am keeping my G.N. for the rest of my live, and I am 55, She is basically stock, except for larger turbo, K.&N. filter, Chip, and adjustable fuel pressure regulator, New timing chain, and bearings, When the chain failed, the trapdoor in the pickup screen lodged open, and she sucked up some of the chunks of the plastic coated cam gear, found some in the journal holes, also, after this developed a loss of oil pressure, and I found a chunk keeping the oil pressure regulator from bottoming, dumping most of the oil pressure, Needless to say, I put a pickup tube from Napa on, and now have a heavy duty chain. I recommend replacing that stock chain and gears before they fail.
