pulled it and it's still engaged. Would that be a bad torque converter then?

 

Unfortunately, it sounds like you'll need to deal with Monster on repairing your transmission under warranty or have another company/knowledgeable entity properly rebuild your transmission. Did you get a reman'd torque converter from them, along with the rebuilt transmission? They are still in business due to a glitzy website and folks not checking their reputation before dealing with them.

You can also look into rebuilding the transmission yourself. There are plenty of YouTube videos on the subject if you're interested..

 

Plus a lot of the tv shows use them, Probably because they are a sponsor. Try here.

 

I had done a rebuild using parts from PATC and they were great to deal with. I messed up the rebuild but the service was good.