If it doesn't have a gasket you might want to put one in there also. Probably the two bolts just came loose.
I know that MGW makes a gasket that comes with their shifter and also can be used with other shifters, but in my experience it is completely unnecessary. A thin bead of Permatex works well, and is reccomended per the Steeda Tri-Ax install guide.
2001 GT Convertible /1967 Coupe
All the usual bolt-on's /200 I6, C4
And a few Explorers too... 2008 4.0 XLT 4x2, 1996 XLT 5.0 4x2, 2003 Sport Trac XLT 4.0 4x4
Sounds like an adjustment. Maybe a throw limiter came loose and is contacting the handle. Remove the boot (and the dust cover if it's still there) and snap a pic so you can post it here. We can tell you exactly what to do from there...
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