Just replaced my 2.9L and pulled the engine and tranny out as one unit. In retrospect, this was a MUCH better decision than trying to do it seperately, both on removal and install.
Additionally, yes the tranny lines were a serious pain in the you-know-what, but it was worth the effort to do it this way. One tip: the tranny lines fasten into the tranny with a 19mm nut. Take good care in removing them and carefully placing them out of harm's way when removing the engine/tranny as they run extremely close to the exhaust and you will play hell trying to keep those two appart onthe reinstall if they are bent. Luckily, I have a machine shop and was able to manufacture replacement lines to fit where I wanted them to go after I screwed up one of the lines on removal. Otherwise, I would have been ordering them at considerable cost from Volvo.
Good luck.
Scottie