oldsouth,
I have similar thoughts about my "lowly" E-class '87 300DT. Just ask Dave M !!
Currently I am just riding it out & not spending money until I need to (i.e. something really "breaks"). In my case, I have the parts I need to fix the engine (head).
Your situation is a little tougher because those factory rebuilt engines cost a lot more $$$ and they aren't always available. If you really liked the car then I'd probably get it taken care of while the parts are still available. - after I did some diagnostics like Dave suggested to verify it ain't something else. Like make sure the turbo rebuilt isn't prematurely failing.
Also consider suspension work, differentials, transmission, evaps, and other things that you have already done or may need to do. All of these things are $$$$ on a W140.
Regards,
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Brian Toscano
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