The pilot bushing is located inside the crank at the back of the engine. To change it you're going to have to pull the trans/clutch/ and probably the flywheel. and get a puller to pull it out, or try to pry it out, or very carefully cut it out with a dremel. Then just press the right one in with the right sized socket and a hammer.
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I had so many 240's I started my own club!
Now if I could just get them running...
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