After doing some research, I think it may be the bushing that sits behind the seal. I did notice the TC being a little "wobbly" after installed. And since I still don't know jack about autos, I didn't think anything of it. But apparently if the bushing is worn, then it wears the seal uneven and puts more fluid pressure on it.
I ordered a new bushing and I am going to pick up another seal. Hope to tackle that Saturday.