transmission clean up and paint

can i set the tranny upright while i prep and paint?...or will that harm the tranny somehow?
Sure, but make sure that it is drained completely unless you prefer
red sneakers.

I clean the exterior before rebuilding it as it is much easier and neater
to work on.

They did not paint them from the factory although most racing trans builder
paint them (My ProTrans units are Gloss black).

X2 on priming trans (and engine) prior to painting = It makes a difference.