Yes, tranny out which also means engine out, unless you cut away the transmission crossmember. The OD kit should give no problems as it isn't made up of any special parts. It's just a group of all the parts that are different between an OD tranny and a non-OD one. If you want OD and your transmission is in very good condition, the kit is the way to go. If your transmission is tired, just buy a complete OD transmission. That way you can drive your non-OD unit while you get the OD unit ready, and there is no down time.
I have an early 3-sync OD transmission that I plan to pull apart, and then mate the OD unit to my "original to car" non-OD unit, which is also in excellent rebuilt condition.