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06 S60 Clunk on acceleration S60

I did check the fluid as part of my inspection. It looked clear and red with no burnt smell. It appeared normal.
The torque converter issue you mention may be the problem, since as you say, the engine mounts would cause the noise all the time, not just when hot.
If it is the torque converter:
1) Is this error something that would show up on a code reader (is there a code for this and could the computer detect it)? If so, wouldn't the CE light come on? I know in my 850, when the transmission computer throws a code, it lights the CE. (I found an easy fix to disable writing of the tranny data so anyone with a regular reader can reset the CE light from a tranny code. Let me know if you would like this info).
2)How big of a job is it to repair? Would it involve a new tranny?
Thanks again for all of your help. It's great to have you as an expert resource.
Bob






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