I have a 94 E320 wagon (104.992 engine) with about 190,000 miles. I recently did the cylinder head project--the whole enchilada drill as you described. The machine shop that rebuilt the head commented that nothing was out of spec. Guides, lifters, cams--everything was good. They said it had a very slight warp which was corrected by resurfacing. They also cleaned it, (lots of carbon build up) reseated the valves and put new seals in. I bolted it all back together and it runs great. The machine shop bill was $340.00.
If I had it to do over, I would probably do the "whole enchilada drill" again although I'm not sure it is really necessary. I plan to keep driving this car for many years so that probably influenced my decision. I'm sure if I hadn't done the rebuild I would constantly wonder if I should have.....
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