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Sounds like a good plan. MB trannies can be rebuilt, but you DO need to know excactly what you are doing to get them right. Considerable "extra" dissasembly is requried to get at all the seal, and there is enough wear on gears, carriers, bearings, and clutch drums that they all need to be checked and refinished or replaced (thrust washers on pinion gears are usually shot by 200,000 miles, for instance) if decent service is expected.
Good luck! Hopefully it is just a servo causing the leak and a stuck or broken spring causing the failure to shift (both are known problems).
Peter
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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!
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