Need help with clutch problem

Just finished install of a 9" Ford in my '46 Ford coupe. I am running a warmed over 59AB flathead in front of an S10 T5 transmission. As I completed the last task of connecting the e-brake cables, I decided to take a spin to make sure everything was ok. I live in a rural area and as I returned home, I stopped at the mailbox and checked for mail with my foot on the clutch. I heard a mechanical ping and the car gave a lurch and died. I tried to put the trans in neutral, but was unable to move the shifter.
I walked back to the house and threw a floor jack in the back of my truck and went back and jacked up the rear of the car. I was then able to turn the rear wheels so I tried the shifter and it was free. However, the clutch pedal went to the floor with no resistance and would not return unless I pulled it back up. My wife towed me back up to my shop and there I jacked it up for an under car inspection. I saw nothing unusual with the pedal linkage except the return spring angle wasn't exactly ideal.
My first thought was the throw out bearing fork had broken, but after talking to a buddy, we now think the lining may have separated from the clutch disc. In any event, I can't tell if the T5 ****** can be removed without pulling the engine. And, even if it can, won't the engine need to come out to get to the disc? If the engine comes out, I want to try to solve some of the rear main leak that I inherited from the previous owner who told me I would probably want to put another rope seal in as he knew he didn't do a very good job. The other day I ran across a guy who has run flatheads for a few years and he told me they didn't use a rope seal--they depended on a shield and a slinger or some such to keep the majority of the oil in the engine. He also told me they all leak and we just had to live with it.
So to make a long story even longer, do I need to pull the engine or just the transmission. And, can I solve the majority of the rear main leak with a new rope seal or just grin and bear it? Also, could it be that the leak and the clutch problem are related? Thanks for any information you can provide.

 

Something broke in the bell IMO.

Depending on what mods were done to the center X member, you may need to pull the engine if there is not enough room to slide the trans back far enough.

From what I heard from a local guy with a leaking rear main on a 40 coupe, he says the motor has to come out to do the seal.