There are numerous old threads on this very subject. I'll summarize:

You can use a 240D manual transmission and flywheel. You will need to modify a driveshaft to get the correct length, and the shift linkage will need modification also. It's best to have the donor and recipient cars side by side so you can get everything you need as you need it.

After the swap, expect to gain a little in mpg. Acceleration will be down slightly since you will lose boost while shifting, and the 240D manual transmissions are kind of slow-shifting.

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Whoever said there's nothing more expensive than a cheap Mercedes never had a cheap Jaguar.

83 300D Turbo with manual conversion, early W126 vented front rotors and H4 headlights 400,xxx miles
08 Suzuki GSX-R600 M4 Slip-on 22,xxx miles
88 Jaguar XJS V12 94,xxx miles. Work in progress.