it should go without saying, but i would refrain from running the engine until you solve this, it is the best and fastest way to ruin the pump on your transmission.
There should be no gap between the block and transmission, and as mentioned the flexplate not 'flywheel' should have raised areas that the tabs on the convertor locate to for the attachment points. Take a look at this pic, it is installed correctly.
As you can see, the torque convertor should bolt to the raised tabs. (two visible in this pic) Some convertors have threaded holes, while others use a bolt, washer, and nut.
Hope this helps,