This was originally posted at http://www.bimmer.info/forum/showthread.php?t=780. I've posted them here so Winfred can get some of his web space back.

#1 Teflon seals replacement

#2 Converter seal replacement

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#1 I took a few pics of core tranny parts to give a strong idea on how to repair this common defect, this tranny is in m20 bimmers, m30 bimmers after about 84, volvo 740 without overdrive non turbo, Peugeot and jag don't know which. this is how to repair the main problem with the tranny, when the car will only move in reverse and in extreme cases not move at all.

this is the cause of the problem, these steel seals leak and send pressure to the 1st gear clutch pack and burn it up.

These are the bolts to take out to remove the bell housing and pump as a unit, unless you need to replace the converter bushing you do not need to take the pump apart or off of the bell housing (i will describe the procedure for that and why at the end of the post) .

Here's the bell housing/pump assembly off:

here's the front of the rest of the tranny and case

grab the a-clutch basket and yank it out of the bell housing/pump assembly


here's the back side of the a-clutch basket, there's a steel bearing surface missing in this pic that you will have, between all rotating parts there's a bearing race (looks like a washer) flat roller bearing and another race

you can leave the shaft in a-clutch basket or pop it out so the basket will sit flat on a bench, of you can just leave the whole thing in the bell housing/pump assembly while you do the clutches. there's a spring clip that holds the basket together that you remove with a screwdriver

inspect the basket for cracks, i've found a few blown up from people who didn't take no for a answer, also look at the grove the spring clip was in, those ears can break

here's the pack of disks and plates, there's a black wavy disk on the top and bottom of the pack that you reuse

this pressure plate is under all of the clutches, you can see some of the burnt clutch on it, clean that off and clean under it

here's a new disc and steel, soak the discs in fresh ATF a few minutes before installing

with the teflon seals there should be a drill bit and a sandpaper flap drill thingie, i've never drilled the hole in the 25-30 trannys i've done, it's up to you, it's to relieve any future leak pressure, i've been doing these for over 5 years and have yet to have one of my repairs fail. the sandpaper drill thingie is used to knock down any burrs left from the steel seals here

seals

and where they go

after cleaning the bore from honing it, stick the input shaft back in the a-clutch basket (if you removed it) lube the seals and bore with ATF, make sure the three pieces of the bearing are in place and slide the a-clutch assembly back into the bell housing/pump assembly, it will seat with a thunk and spin freely
put this bearing race on the of the input shaft/a-clutch assembly, then the bearing and last the other race, it will be the smallest of all the races

then insert this gear into the a-clutch assembly

till it's bottomed out in the clutch pack

if you didn't break the paper gasket that seals the pump to the tranny you can reuse it, a new one is a bitch to fit onto the pump without ripping it, all that's left is to reinstall the bell housing/pump assembly into the tranny, get comfy this can be fun sometimes, what the object is is to slip the fingers on the back of the a-clutch into the slots of the 2nd gear clutches in the tranny case, twisting the input shaft helps you gotta feal your way in, there will be no gap between the pump and tranny case when seated, tighten the 17mm bolts in a cross pattern, and you are done.
take your time, look carefully at how everything came apart, if in doubt dump ATF all over it if it's inside of the tranny, the Bentley manual has a exploded view of the tranny if i remember right, when installing the converter make sure it's all the way in, if the tranny and motor won't go together find out why, don't pull it together with the bolts, you can destroy the pump and converter.

i get most of my parts from these guys, but there's almost always a tranny parts place or two in town

#2 new problem
the converter seal is leaking you just replaced it and it's leaking again, the bushing behind the seal has walked forward and is blocking the drain, time for a new bushing

it's hiding here

take the bell housing pump assembly off as seen in the a-clutch repair and take the rest of the bolts out of it and separate the pump from the bell housing and take the bolts out of the back of the pump, then you can strip the pump all the way down and press the new bushing in, reassembly is covered in the a-clutch repair.