Speaking from experience , yes pull the engine & trans together. And you don't have to turn the adjusters on your rocker arms. Just remove the 4 bolts & 2 studs holding the rocker shafts to the head & lift the shaft assemblies off the head.At reassembly time put the pushrods in the holes & set the rear shaft in place then just barely start a couple of the bolts before putting the middle connector & front half in place.Your valve clearances should be close to what they were before dissassembly , that is if you were reassemblying the same engine.Are you going to change the 261 to the early style valve cover ? Just wondering.