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m40 problem 120-130 1966

So, say a person wants to replace the gasket and rear seal on an m40, out of a 66 Volvo 122s. The transmission is out of the car. He stands the M40 on end, bellhousing down, removes the flange, and pulls out the 4 bolts that hold the rear cover to the main case. He manages to pry up the rear cover about 1/4 inch, giving him access to the area where a new gasket should go. Clean, cut gasket, install, bolt down the rear cover. Also rinse out with gasoline, no silver specks.

But something is wrong. There appears to be no neutral. Some gears are locked up. Other gears seem to operate as if there was only 4th gear...rear shaft turns at the same rate as the front shaft. Just turning the front shaft in any gear feels wrong. Too much resistance.

This is a true story. Any suggestions as to what happened?






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