Car is a 1990 300E, M103 engine. I've learned from reading various posts (thanks chowpit) that a blown head gasket is the likely culprit, allowing engine oil into the cooling system.

Ok, headgasket replacement + valves (good idea to check these while inside) (195k) on this '90 300 E, gonna be around $1200 or so, maybe more.

This light brown sludge is also leaking onto the ground, just behind the right front tire. (usually only after long drives) -- I have been replacing coolant as needed, and have had no overheating problems yet. (needle sits right at top of 80c reading as normal, sometimes a bit higher while at a stoplight)

My question is, do I have a radiator leak too? Or is the sludge leak a symptom of the blown gasket as well...

Thanks guys for any input, this forum rules =)

--Paul