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The failure that causes the hard shifts is where the molded inserts tear loose so that the bolts aren't centered in the holes anymore, usually obvious because it's offset on way or the other. the colors on the driveshaft are factory, mine looks the same (quite a surprise, I'm used to plain black or rust!).
However, if the tranny is acting screwy and making noises, you are probably facing a swap. Best thing to do is to buy a rebuilt tranny and exchange, the chances of finding a tranny shop that can successfully rebuild a 722.x tranny is about nil.
I'll check with Hans for the outfit he uses, they seem to be very good.
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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