Zakir, I just did this job last month.Dexron III is compatable(actually an upgrade) for Dexron II. First drain the fluid using that drain plug, then disconnect the pipe from the pan and more fluid will come out.Next remove the bolts from three sides of the pan and tilt forward to drain the rest of the fluid.Remove remaining bolts and clean pan, then remove the screen and its gasket.Install the new screen/gasket then the pan gasket bolt it back up put pipe back in add about four quarts trans. fluid. Start car check for leaks, drive around come back home , shift into all gears, put in park wait 2 minutes and then check fluid level again (car running of course)top up if necessary.

My car has 186 K miles on it and the fluid hadn't been changed since I bought it ( 89k miles).The fluid sure was brown and burnt but the screen actually looked really clean and there wasn't hardly any metal filings. Much smoother shifting now though!

I guess now Volvo recommends just draining and refilling the fluid, but where's the fun in that?

Good luck, Phil Stone '85 245GL 186k