When I go from either park into reverse or neutral into drive there's a noticeable jolt that occurs and the car tries to move. The drive shaft seems ok. When driving and going through the gears everything is smooth and normal.
What could be causing that? I hope is can be fixed with a kickdown cable adjustment.

OK, let's keep it simple. I think the idle speed is too high. Tom

The next thing to check for is badly worn trailing arm bushings.
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Bruce S. near D.C.

Also the torque rod bushings.
Dan

ok chup, jw, brucey and danno- lets get this settled once and for all. what is the correct name for this part. I think danno is right- torque rod, since they stiffen but cushion the torsional curl of the of the body and frame on launch and acceleration. I have seen them called radius rods, anti sway rods and another term I cant recall right now. there are two and they mount with 2 bolts each under the car to the sides of the driveshaft. they were noisy in my 92 245 a few years ago . shysters wanted $300 for the job so I put them in myself using big polyurethane grommets which I had to press in and out of the old rods. no more noise and the tank rides stiffer. strangely the grommets came from Australia. thanks tons oldduke

Duke

I believe everyone has suggested different pieces that could be causing the clunking without blaming the transmission.

There are 2 torque rods attached to the body and differential to keep the drive shaft pinion angle correct. Each torque rod has 2 bushes that go bad, I have found the best replacements are polyurethane, they hold up really well and don't add any significant noise or harshness to the rear end.

Dan

thanks dan- I agree with you, but note the original equipment bushes with the steel collar around them are much cheaper than the poly bushes.never heard of the poly bushes crapping out. btw you seem to agree torque rods are the correct terms. thanks tons oldduke

The part I referred to is the trailing arms. It attaches to the body and the bottom of the diff. The torque rods attach to the body and the top of the diff. Two different parts.
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Bruce S. near D.C.

I'd check the transmission mount for wear and u-joints for slop or play. Don't think a misadjusted shift kickdown cable will cause a thunk.

My current thinking is either the transmission mount or one of the u-joints is at fault. Last year I replaced the torque rod (wishbone) bushings. I may yet do the trailing arm bushings, but of course that's a bigger job. ;>)

AW70/71 Tranny info: Applies to automatic 240's as well as the 700/900 cars.

https://www.brickboard.com/FAQ/700-900/TransmissionAuto.htm#AutoTrannyRefusestoReverseMountReplacement