I have a 93 Z71 two door tahoe with a rebuilt 4l60e. This summer the torque convertor to the front seal blew running down the highway at 70 so I replaced it and everything working great well about a month ago transmission fluid blew out of her driving around the city and I was under the assumption the seal blew again and today I dropped the transmission and the seal is fine so now I am scratching my head and have no idea what to do.

 

Check the pump bushing they can move forward and block the drain back and then will spray fluid out even though the seal is in place. The seal was not designed to hold high pressure

 

pump bushings?

 

Pump bushing:

 

Thanks for the pics and the information! I have removed the the seal and inspected the bushing indicated in the photo and based on the what I see the bushing appears to be in the correct position.
As a side note the transmision fluid smells as though it is burnt, I have flushed the trans cooler and flushed the radiator. In addition the truck has 34" tires could this contribute to the problem.
Once again thanks for the help!

 

I ran an S10 blazer (4L60E) with 38's and 4.56 gears so it was turning roughly the same rpm as stock. If you're using stock gears then yes, thats making the trans overheat.

About the bushing, I've had one leak real bad, then stop. It was moving forward and pushing the seal open. It looked normal when I took the seal out, but when I pulled the pump it came out by hand.