Yes the 617 turbo engine and 240D manual trans will work together.
Installing a 5 cylinder in a 240 will move everything back some.
the manual flywheel will have to be matched balanced to the auto FW.
the 240 front driveline section will have to be cut and rebalanced.
will have to shorten the shift rods.
use the 240D automatic trans X mount

there is a thread running right now on this subject.

www.peachparts.com/shopforum/showthread.php?t=263717


I just put a 4-spd in my 85 300D this past April, I have little over 10,000 miles on it. It is a totaly different car.

charlie

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there were three HP ratings on the OM616...

1) Not much power
2) Even less power
3) Not nearly enough power!! 240D w/auto

Anyone that thinks a 240D is slow drives too fast.

80 240D Naturally Exasperated, 4-Spd 388k DD 150mph spedo 3:58 Diff

We are advised to NOT judge ALL Muslims by the actions of a few lunatics, but we are encouraged to judge ALL gun owners by the actions of a few lunatics. Funny how that works