I'd rather go with an updated head if one can be found without breaking the bank. Somewhere there is a #22 hiding. I'd be hiding it too if I had it.

I could probably replace the head gasket and slap the old head back on and it would run...but for how long?

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1987 300TDT
1981 VW MKI Caddy 1.6 diesel, waiting on engine swap
1983 D-50 Power Ram 4x4 "Mitsubishi" 2.3 turbo diesel
assorted gas powered crap and motorcycles

RIP: 1984 300TDT, 1982 300TDT, 1984 190D 2.2, 1992 300D 2.5, 1987 300TDT, 1982 Maxima LD28, 1983 Maxima LD28, Isuzu C223 P'ups X3, 1983 Holiday Rambler 6.2 Banks turbo diesel, 1984 Winnebago LeSharo 2.1 TD, 1985 Allegro 6.5