Just replaced the head gasket on my own 260E. It wasn't a difficult job, but took me about ten hours labor, plus stripping and repainting the valve cover.

Would have been less if I knew what I was doing.

I had the valves redone and the head resurfaced at a local head shop while the head was off. That was the big expense at $330, and was probably unnecessary, but...

Anyway, a highly competent home mechanic can do this job. The most difficult part was taking loose the two bracket bolts UNDER the intake manifold.

I found that there are some odd tools that you need:

Head bolt 12 point socket: Auto Zone $13
Chiming Chain tensioner 12MM (?) allen wrench. Just used vise grips on the outside of the tensioner.
Chiming Chain tensioner 17MM allen wrench: Used a 17MM head bolt on the end of Vise Grips.
slide hammer extractor for pin throughtiming chain guide: used a bolt and prybar instead... Wished for the slide hammer.
Socket-wrench driven allen set: 4-10MM. Worth weight in gold.
Sealant for top timing cover: I should have sprung for the good stuff. Auto supply non-hardening sealant HARDENED and it leaks only a week into its new life.

All other tools are off-the-rack Sears Craftsman wrenches and sockets.

Anybody that has done these before but gets $2K for a day and a half's work is making serious profits, unless they are using MB parts and having that head redone, too.

The gasket set bought here was under $60 and included everything. The valve guides and such items were under $50 as I recall.

Good luck regardless.