TH350 help.

[lthomp72]

My 72 GMC 1500 has a TH350. I just rebuilt the TH350 with a TCI kit and installed a new "boss hog" stock stall torque converter. I got about 120 miles on it and it just starts screeching making other ugly noises in R and D, stopped with my foot on the brake, engine idling. It has a slight hesitation to accelrate and then accelerates and drive fine. I pulled the trans out and when I pulled the torque converter off, there were metal shavings all over the input shaft and the fluid coming out of the converter was filled with shavings. When I got enough fluid out of the converter, I could see where the tapered end of the outer part of the input shaft was rubbing away at the inside of the hub inside the torque converter. The pictures show the end of the shaft and down into the torque converter, where it was rubbing. What could have caused this? Any ideas? Anybody seen this before? I appreciate your ideas.