Alright, got the car back earlier in the week! THis baby drives sweet now. The tranny was simply a cable adjustment, shifts smooth as glass now..the other shop claimed it was toast..
Steering is very firm now, steers like a sports car now. Engine is very quite, starts on first try too now.
The shop pulled the tranny and put in new seals, and put in a new rear main seal while it was out, changed all the fluids, tranny, oil, radiator. Replaced the power steering pump, left gear box alone, replaced the steering coupler, totally replaced the AC and converted it to R134A, new compressor, drier, etc. Also fixed the vacuum motors for the vent, all vents work now and defrost works, however he did say the middle 2 will always blow until there is reason to tear the entire dash apart to fix it correctly..but at least the center 2 and defrost work now. Replaced timing chain and all the upper guides too.
Total cost was $6k, the most I've ever spent for repairs, but there was a lot of repairs and I didn't have the time to do them all, overall very happy and all repairs have a 12 month 12k warranty...and I picked up a starter for my next door neighbors '83 500SL grey market car from him.
I'd have to recommend him to anyone in DFW area, International Motor Cars in Rowlett.

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Rob

'87 560SL
'87 Buick Grand National
'79, '89', 99' Anniversary Trans Ams