Two thoughts (or maybe more depending on how much I type)
First converter ballooning usually only happens under a high stall condition like a loaded trans launch from the line on the quartermile.
Second there is a big discussion on the YellowBullet form on engine thrust bearing wipeout
http://www.yellowbullet.com/forum/showthread.php?t=234678
There is also a good you tube vid on TC movement under power
http://www.youtube.com/watch?v=YEfqKoilLkI
Usually two reasons are the TC is loaded at stall (balloons)or the converter oil pressure is too high and pushes the TC against the engine thrust bearing.
Me I just wiped out the TH400 oil pump gears not allowing enough play in the TC slot for TC movement. I hopefully fixed that by milling the oil pump slot deeper and taking 1/8 inch off the TC snout.