Volvo: Rear tailshaft tranny fluid leak, forward gears, auto mechanics

Question
Hello!
  I have a 1990 240DL (174K) that has a pretty significant transmission fluid leak.  The leak is coming from the rear tailshaft.  We have replaced the seal, which has helped for about 10K, but unfortunately, it has started leaking again.  There is a lot of play in the tailshaft - and my father is suggesting replacing the rear portion of the transmission.  He's worked in auto mechanics for 20 years, but mostly domestic vehicles - so we're looking for an expert opinion.
   I accidentally drove until it started to slip a bit - but once I put more fluid in, it started shifting fine again.  Reverse has always been a little sluggish - but forward gears have been alright.  

Any suggestions???   Thank you!!! :)

Answer
Ashley,
There is a bushing in the tailshaft that can be replaced. There are some trans bushing puller tools that will allow this to be done on the car. However the tailshaft can be removed and the bushing pressed/pounded out and back in. Replace the bushing and seal.