Front axle differential removal 3.0d

[700OHT]

This is my first posting, I have DIY'd all of my X5 repairs so far and I don't want this one to beat me!
I own a 2004 3.0d sport that has seen some abuse in the past, it had been flood damaged and I bought it very cheap knowing that I would have problems. I have owned it for 2 years and every few months something else goes wrong, this time the front differential has completely failed.

Does anyone know how to remove the front diff, I have been able to remove the left, right and prop shafts and unbolt the diff. The problem is that it will not fit between the sump and the subframe to extract it from the car. I have undone the left and right engine mounts and lifted the engine by about 1" but it still won't quite fit.

Do I have to remove the engine, or am I missing something.