Stace, the Subaru converters are a unique set up as the drive has to go a long distance past the front crownwheel to get to the pump. The tube thing is a drive extension and has to be set very carefully. Many people fugg it up, even experienced mechanics.
Unless you located the converter on the auto trans and rotated it to engage all 3 sets of splines and drive dogs, you have more than likely got something pretty nasty going on in there right now. If you had the converter hanging on the back of the engine on reassembly, you would be the first person in history to have sucessfully lined it all up.
That tube also has a teflon pressure seal on it like a piston ring, they often break if they bet bumped or misaligned, trans oil will leak past or blow out the rubber lip seal eventually. Changing the lip seal has little effect as the pressure shouldn't be in the tube if the teflon seal is intact. Ring me if you want me to talk you though it.