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You could always take some self tapping screws and screw it down better but I think your transmission performance would degrade. Seriously, TH400's have been in service since the late 60's. I have worked on them since the 80's. I am not an expert but a knowledgeable layman. The pickup tube will...

It is normal. The filter is loose so it will sit down on the bottom of the pan. If you look the intake for the filter is on the top so the lower it sits in the pan the better. It is kind funky but that is the way it is supposed to be. Also, put you location in your signature. It is one of the...