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Yes the "R&R headgasket" means the headgasket was replaced.
The other one, the R&R Transmission 722.0-722.4 means the transmission was removed. It's all rather cryptic, but I am assuming they may have had to replace a cracked "flex plate", which is what drives the torque converter. Either that or there is more to that work order you're not saying, like they resealed the front pump in the transmission, or replaced the rear main seal in the engine, something like that. No other good reason to R&R (remove and reinstall) the transmission.
The "right rear" leak on the engine, that's not common in this engine, it's common in the dual cam (M104) engine, not the M103.
I agree that what is referred to as the "horseshoe gasket" (first time I think I've heard it called that!) could be the problem. They HAVE to use the correct sealant on this job or it won't last long. The PROPER sealant is ONLY Loctite 5900, and the procedures must be followed, especially in terms of cleanliness and cure time of at LEAST 2 hours, I prefer an overnight curing time if possible (do the job in the afternoon and do NOT start engine until the next day). The seal is usually referred to as the "lip seal", also called the cylinder head front cover lip seal. It's not a gasket it's a rubber profile seal.
Depending on miles, etc and how bad the leak actually is, the problem could also be the valve stem seals. Usually a quick spark plug inspection will reveal if these are worn out or not (heavy deposits on the plugs, usually a normal tannish color and may have a "glazed over" look to them. The seals are replaceable without removing the head by using compressed air to pressurize the combustion chambers, then the valve springs can be removed and the seals easily pop off and on.
Gilly
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