hi there, the output shaft bushing (tailshaft)bushing i call it. is located where the driveshaft connects to the tranny, can be done its cheap parts but a pain without the (tool) it wears and the seal leaks. the other leak you describe doesnt sound good but track it down. the tranny cooler lines wear out where they are strapped down in that same area then blow fluid all over. easy fix. the motors are almost bulletproof. either tranny is very good the aw-71 is stronger. slide under the driver side door and look on the tranny for the tranny i.d. plate. plan on putting five hundred to one thousand bucks in her in the next year to get it right. these cars seem to drive even when they arent right. if your not careful you might get hooked on the volvo, and then you will need more volvos. ask me how i know. good luck ;-}