3.3L starter locks up flywheel when torqued

[jetsetc5]

Nissan frontier 2000 Frontier 3.3L 4x4

Just rebuilt engine and when I nstall and torque starter it binds the flywheel. I installed the rear plate and also the lower rear cover as per the manual. In had the flywheel turned and installed a new clutch disk, but used my old pressure plate. I torque everything to specs. If I just torque the lower starter bolt the motor turns by hand, but when I torque the upper bolt, it locks up the enginge. Im stumped!