check out these explanations with pictures. nothing on torque converter, you need to buy his DVD to get that, but the rest is pretty nicely described.
i need to do my 124 soon. i think i'm going to do the "flick the key method" to get the tc in the right place....

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1974 240D, 125K mi, B100 now, SOLD
1980 300TD, 115K mi, 4-speed stick, roll-up windows, greasecar with two tank conversion (daily driver)
1985 300D, 220K miles, greasecar with two tank conversion, SOLD
1993 300D 2.5turbo, 158K miles, green/tan, B20-B50