Are you certain you can't hone the ridge with a spring hone? I've never seen them so bad they couldn't.
That's a pain in the arse job. Removing the engine with the torque converter still attached is OK, but unbolt it and put it on the input shaft when you go to reinstall or you can damage the pump.
The top bellhousing bolts are nearly impossible to get out, unless you remove the motor mount brackets and lower the engine as mush as you can to get access.
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