Weird Groove on Converter snout/bad leak

That doesn't sound good Brad. Sounds like it's possible the front pump bushing is trashed. Maybe whoever rebuilt the trans screwed up the bushing when installing it or another possibility is there is a trans to engine alignment issue. Shine a light down into the front pump where the converter slips in and see how things look. If the bushing is trashed the pump will have to come out for repair. Do you have a transmission/converter shop near you? If so they should be able to replace the snout. Usually doesn't cost too much. My guy charges me $85 to replace the snout and disassemble the converter, clean it and reassemble it. If the bushing is chewed up it can also take the pump out with it and fill the pan full of metal that'll need cleaned out and the transmission cooler will also need to be flushed out.