Thanks for the advice. I will update this thread as I make progress. I was ready to scrap the car, but I am encouraged by everyone's help so I will pursue a repair.

I looked up the procedure to remove the turbo in the MB manual. It doesn't look too difficult, maybe two hours if exhaust flange bolts don't resist too much. My plan is to pursure both repaining the existing unit and locating a used turbo.

I found a lot of 617 turbo's on car_parts.com. Prices vary greatly ($75-500) so I'll start working up from the low end and ask about the history of the car it came from as well as any guarantees.

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Chief Noseeum

74 450SL 120 K
82 300TD 198 K
04 Satrun ION 5 spd 8 K