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When I replaced an engine last year on a 940, I left the auto-transmission in place. I put a pile of wood blocks under the pan to support it, and then pulled the engine out. I did not have a particularly hard time getting the engine and trans to line up while installing the new engine. When the engine is on a hoist, it is easy to shove it from side to side a little bit to make it line up. If I had to do it again, I would do it the same way. The engine+trans assembly is huge and heavy and it seems to me like it would be much harder to try to remove (and re-install) both at the same time.
Good luck with your project.
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Matt L. -- Cary, NC -- 1991 740 wagon
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