904 won't turn?

Wow that converter is supposed to be new!! Looks like a junkyard converter to me. If it looks that way on the outside the inside is probably just as bad. I'd definitely be taking that back and getting a new one that is actually new or getting my money back. And to answer the question about the valve body, it should be fine as long as the shift kit was installed correctly. The converter problem shouldn't have any bearing on the valve body.