You've got the right idea. Wait until you see how easy it is to put the trans and engine together when the thing is sitting on the ground. Compare it with hanging them suspended and trying to get them together... it's a no-contest deal.

I'd go with bolts in the head bolt threads. I don't like to use head bolts because they're "head bolts"... but that's up to you. You can just get some other ones that fit the threads. If you get a couple of pieces of scrap steel bar, you can drill it out so you have a nice bracket to lift with. That'll handle the load without question. Even some good wood would probably work, but I like metal to do that kind of heavy lifting with.

While you're at it, follow the other guys' recommendations. Just peel apart everything that is a wear item, and when you put it back together, you'll feel like a million bucks knowing that it's all OK.

The peace of mind is worth far more money than you'd want to spend on it!
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chris herbst, five volvos.