The vent should be on top near the front of the tranny. I'm no tranny expert, but the fluid should be pumped through the torque converter. Since the fluid is pumped through the tranny, torque converter, and transmission cooler, the TC draining back sounds like it would only happen if you had a line blocked somewhere.
How old is your fluid? If the vent turns up clean and the fluid is old, maybe doing a flush will give you a better idea of what's going on. We have an excellent DIY article on the flush written by a member here
Changing ATF Fluid in a E4OD and 4R100 transmission .: Articles