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98 V70 Engine change and transfer case fitting problem V70-XC70

My 98 V70 AWD engine had issues with overheating and it finally failed. I found another B5254T motor with less miles and good turbocharger, which was out of a 98 S70 FWD. I pulled the old motor,transaxle and bevel gear out as a single unit. Then I installed the donor motor to the transaxle followed by trying to install the bevel gear. The bevel gear case was hitting the side of the block and would not allow it to pull tight to the transaxle case. After inspection of the original V70 block, I see they also had clearance issues back during the time they added the AWD. The original block had been ground down to allow clearance for the bevel gear to be installed. 3" below the oil dipstick there is a small mount that sticks out 1/4" past the block. This mount and part of the block webbing was ground off. The donor block still had the mount and after grinding it and part of the webbing the bevel gear slid right into place. I have never seen anyone indicate having this problem so I wanted to post it.







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