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My '84 300SD had the same problems and I did just as Larry said...when the leakdown test showed leaking exhaust valves, the head was off, and to the machine shop. The machine shop tested the head, and I needed everything but intake valves...but needed guides, seats,seals, exhaust valves and the head was milled down couple thousands. This was 20K ago, and the car runs great. The head rebuild cost me about $350.
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1983 300SD 343K everyday car
1983 300SD 285K from junk yard-tooks parts from deer car- runs great. Brothers car.
1984 300SD parts car-Hit deer
1979 300D 175K non-turbo "Doctor"
1979 300d parts car
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