Well you can do it in the car, and many people do. I'm not sure how well you are set up at home to be dealing with moving an engine & box but doing any major work on these engines in the cars is awkward, even for mechanics with specialist tools. Taking the engine out will add hours to the job but it makes removing & refitting the heads easy rather than an ache. Also, with the engine out it means you can do anything that you need to do. You may get so far into the job and then need to take the engine out anyway, for example if it shows signs of liner seal failure.
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