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I agree with Tom about just doing a head job, which would run you only $1,000 -$1,200.
The bottom ends on any Mercedes engine virtually never wear out.
I'd replace the valve guides and seals, a new headgasket and button it up.
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Paul S.
2001 E430, Bourdeaux Red, Oyster interior.
79,200 miles.
1973 280SE 4.5, 170,000 miles. 568 Signal Red, Black MB Tex. "The Red Baron".
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