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Agree with Nickvjr entirely.
Please e-mail me photos, including your tranny (menaster@yahoo.com).
I would definitely flush the transmission through the transmission cooler lines that interface with the radiator. This bulletin board discusses details, but for my 1985 245 DL with AW70, I went through 8 quarts of ATF before the fluid came out clear. Be sure not to let the tranny fluid run out while flushing it.
I think your unit would use type F, right? That's important to know, and be sure your synthetic is compatible.
My new mantra is: you cannot change your tranny fluid too frequently. I live in hilly San Francisco and tend to be hard on my cars. I'm changing my transmission fluid yearly, even if the car is garaged. My back up/project car is a 1980 240 DL with M45 (4 speed manual). I've driven it 5 miles in the past year. Last week, I changed the tranny fluid and found metal shavings on the tranny drain plug (fluid was clear). That really pissed me off, but helped me realize the importance of monitoring tranny fluid.
Volvo's TSB (see my website, http://www.geocities.com/menaster/Volvos/MyVolvos.thml) says that removing the tranny pan is no longer necessary, at least if a drain plug is present. You may want to retrofit a drain bolt (14 mm socket head that you can get from junkyard trannies) if you don't want to do the tranny cooling line flush.
Finally, the old saying, "they don't make them like they used to' is soooo true. I understand that new cars (Volvo, too?) are shipped with "sealed transmissions," ie there's no dipstick and no way to change the tranny fluid. I'll expect those trannies to last 100k. Guess the junkyards will always have new referrals!
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