When I installed my motor in my car the trans torque converter was real close to the flywheel. I spun the converter several times to see if it would seat any further with no luck. It is a turbo350 BOP tranny. There was less than an 1/8 space between the flywheel and torque con. so if you have same problem I'd be leaning toward the flywheel being backwards. Like tohcan said if you haven't cleaned and painted the flywheel you'll see marks on mounting flange that tells you how it was mounted. The wear you speak of is a good sign of what way it was on before too.