K.R.
Sounds like you're getting frustrated, and I can completely understand! My oldest was 3 1/2 when he finally learned, and it was a frustrating process for us, mostly I think because I didn't know what to do to help him.
Generally, it sounds like you're doing everything right. He's showing the signs of being ready to learn and is learning to recognize the signals from his body. It sounds like you have a "potty chair"; we tried that and then switched to the big potty. For some reason, he preferred it, and it was one less thing in our small bathroom. But either way is just fine. You might want to check out the book I eventually used, which was "Toilet Training Without Tears." It has lots of great advice on the entire process, and one of the things that helped up most was an Elimination Chart. I noted the times of wet and dirty diapers, potty "tries," and using the toilet. It helped us to see his pattern and get him there at the right times, and he really loved getting to put stickers on the chart (at first every time he tried, then we switched to every time he went on the potty, and finally for a few weeks it was a sticker for every day with no accidents).
We had a similar problem, with getting off the potty and immediately peeing. And I've seen it with other kids too (I do day care and am potty training several kids all the time, it seems). With my son, books helped, since they seemed to take his mind off what he was doing so he could relax a little. Another little girl I know actually used to sit and sing a song: "Re-lax. Let the potty out." She would sing very slowly with deep breaths to "let the potty out." It seemed to help her a lot to avoid the tensing up when she sat down.
Finally, if you want to try it, the thing that really did it for us was a few days of "bare butt." After my frustration with treating pull-ups like diapers and cleaning what seemed like hundreds of pairs of underpants, I finally undressed him from the waist down (but it was summer, so it might be less practical now). I had to keep a very close eye on him, of course, but as soon as that potty started to come, we would race to the bathroom. At first, there was a lot of cleaning up messes, but it only took a week or two to see a marked difference. And I didn't worry about poop accidents, especially since the Elimination Chart helped to know when to get him in there anyway.
I hope some of that helped. This can be very frustrating, I know, and you're not alone. Good luck!