Does the engine have to be lifted out to change the upper oil pan gasket?

Yes, it does, here are the instructions on how to change the upper oil pan gasket in the images below.

For Upper Oil Pan/Ladder Frame Service and Repair information please refer to Engine, Cooling and Exhaust/Engine/Service and Repair/Procedures/ See: Engine > Procedures > Disassembly

Check out the diagrams (below). Please let us know if you need anything else to get the problem fixed.