OK on with the show. While it was high noon I wanted to make sure and get under the truck and check things out with a fine-toothed comb to make sure there wasn't anything else going on under there. And it was a damn good thing I did. On top of being anal and just wanting every bolt painted nice and clean this also serves another purpose. As you can see here the bolt head was being rubbed by the BH! This is a GREAT find. So obviously besides the housing surface being a tiny bit out of true this adapter bolt it interfering with the mating surface between the two. If I hadn't painted the bolt heads this would have been VERY hard to see. I probably would have found this problem anyway but this is why I have every single thing super clean and easy to see and work on. It makes it a hell of a lot easier to spot problems, find leaks and stuff.
This was a welcome sight. If feels good to actually find something that you are confident in as being the source of the problem at hand. I test fit everything before assembling so I don't know how I missed this calculation. And since it's way up at the top of the adapter you can't really see it if you don't stick your head up there. And the times I was taking the transmission in and out was in a darker garage and in a big hurry to get it together to test out. And being that they paint is fairly thick it probably took a while for the paint to wear threw. Anyhow I'm just glad I didn't do a bonehead move and assemble the whole thing without inspecting it thoroughly.