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Smogging depends on your state. OC == California? Then most likely yes. Get it smogged before you get it fixed to see if it's worth it.
Fenders and hoods and headlights for W126 sedans are available. I'm selling some as are at least one other fellow here. Not that you want us to send you a hood cross-country.
If you have the time and patience to part the car out, by all means do so. It's not a quick process and you will need to be able to store a canniblized car or a pile of parts from it.
On the other hand, if this is a cash repair job, it should be a fraction of the quoted price for "insurance purposes" if you know where to find the out-of-the-way little body shops that abound.
-CTH
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