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Need Help Removing Rear Flange from a M40 to Install New Gaskets 140-160

Ok, so I have a M40 transmission from a `68 145 with a decent leak coming from the rear of the transmission. From what I can tell, it is coming from the housing on the back of transmission near the flange that connects to the drive shaft. So, I went and bought a gasket kit from IPD (see below) and attempted to replace the gaskets. My friend and I broke out the Haynes manual and followed its direction to disassemble the transmission. We locked the transmission by moving both forward gear selectors forward and then attempted to remove the nut holding on the flange on the output of the transmission. In the Haynes manual it says that we should be able to remove this nut "with difficulty" and they weren't kidding...we have tried everything and cannot get the nut off. It is a large 1 1/8" nut, which we found a socket for, but even using a 3-foot pipe on the end of our wrench we were not able to pop the nut loose. In fact, all we succeeded in doing was breaking one of our ratchets and bending another. Any ideas on what we are doing wrong? Has anyone disassembled one of these transmissions and have a suggestion on how to proceed? I have some pictures of our setup at the link below. Any help would be appreciated! :)

Thanks in advance,
Brian

Pics:
http://img64.imageshack.us/g/img0549g.jpg/

IPD kit:
http://www.ipdusa.com/version.asp?strPageHistory=category&numSearchStartRecord=0&strParents=78,317,680&P_ID=1685&CAT_ID=680&V_ID=3856






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