Head is off the car for a new gasket. Burning coolant, head checked out OK,
waiting to get it back from the machine shop. Everything looked amazingly good for 368K. Question is to replace front crank seal do I need the ring gear holder or is there another way? Tool is $140+ from Fastlane. If necessary I'll just get it and loan it out you guys. Thanks

No other solution?

I have a '79 300SD and am having trouble getting the old seal out as well. For my engine the MB manual says to use a screwdriver to get the old one out and the special puller to get the spacer out. I'm not sure if yours is the same.
I've used a screwdriver, needle nose pliers and various picks; sprayed things down with carb cleaner and PB Blaster but I haven't been to get the old seal out.
Still working on it.

Don't mess it up too much yet. Out here in CA the local Autozone lone tools for free if you retrurn them. See if the part stores in your areas have similar loan programs. Take the manual with you or a print out showing the seal so you can show them. See if they have a small slide hammer and a seal hook to attatch to it. You may have to remove your radiator to get enough room to use the slide hammer. But you need to have some good unbent metal for the hook to grab onto.
Here is another possibility: Wait until the window completely opens up and look at the way this guy has ground a groove in the screwdriver to remove the seal: http://cgi.ebay.com/ebaymotors/VW-Diesel-Injection-Pump-Gasket-Kit-Bosch-DGK126-Rabbit_W0QQcmdZViewItemQQcategoryZ6763QQihZ007QQitemZ170189563074QQrdZ1QQsspagenameZWDVW

Last thought could the bolts around the aluminum oil pan near the seal be loosend and the pan be pulled down a little to relieve tension on the seal.

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84 300D, 82 Volvo 244Gl Diesel

I worked mine out today using a small, flat-bladed screwdriver with an 8" handle. Worked the bladed between the crank and the pushed the driver toward the engine while rotating the handle. Keep in mind this worked on a 79 300SD. This may not be appropriate for your engine.