Coming along nicely...looking good. Engine back in is a big step. If they're 40 year old hoses, may want to replace anyways. My 2 cents.
Indeed, I found some 42" hoses on SkiDIM that would work perfectly to get the cooler in front of the engine and below the trans oil sump. According to the Borg-Warner service manual the cooler is supposed to be at sump level to prevent drain back.