not sure if you've got the torque converter bolted down like that, but you actually want as much distance from the torque converter sprocket and axle sprocket as you can reasonably get. reason being that if you have a small 10 tooth sprocket right next to a big 60 tooth sprocket, the chain tends to slip right over the smaller sprocket if there's ANY slack. now move the 2 farther apart, and the chain wraps around the smaller sprocket better, and you have much less chain slippage.
so... if that's how you were gonna bolt the TC on - don't do it! flip the driven clutch side up so that the assembly is at a 90 degree angle, giving you as much distance between the 2 sprockets as possible! sure, you'll need a longer chain - but it'll totally be worth it!
now if you were planning on throwing a jackshaft into that mix for further gear ruduction (more torque!), then ignore my above comment, because you will be going from closer-sized sprocket to sprocket, which will improve your chain grab.