That's a good idea. I'm gathering tools now for the project. I got a 1.75 end mill with a 3/4" shank off Ebay for $10 plus shipping. I'll use that to plunge in, then use my boring head for final diameter.
But again my biggest problem is fixturing it. I'm guessing the hole is probably 20 degrees positive in one direction, and the same in another direction.
My plan to get the hole perfectly vertical is to take a 2" piece of stock and turn a 3/4" spud on it to go into my collet on my mill, then turn the other end to fit tightly into the hole. I'll put a shoulder on it and it will bottom on the spot face, and I'll drill an tap that end and make a strap clamp I can put inside the housing to clamp it to the end of the rod. This will get the hole vertical, then I need to square it up in Y axis.
Next comes trying to design a fixture that will hold it tilted it to the right. That gets the face of the housing secure. Then the second fixture will both up to the transmission mounting holes with a forward tilt to it. The position needs to repeat accurately. What I'm doing is duplicating the hole you see in a housing in a similar housing that is cast for it, but isn't machined.
I hope my description isn't to hard to follow. If I can get the rod turned and mounted in the mill with the housing on it and take a pic, it will be much easier to understand.