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this is the 110 engine. right?
the head is very tall. a leak at the head gasket might be hard to see from top side. a leaking main seal is not an emergency situation, since the worst that can happen is it might keep leaking and eventually get a bit worse. it is more of a nuisance than anything.
in any case i think it can probably be changed with the motor in the car. i would suspect any number of other sources for the oil, though. power steering? ac? so look carefully before deciding anything.
the 110 engine is very very very durable. a rebuild is not likely in order, if the car has had reasonable care, til 3 or 400k miles.
we had to take my 280 apart this year and at 143k miles we simply honed the cylinders, installed new rings and put in the original bearings. they showed no wear at all. we also did a valve job. they are reputed to be as durable as the legendary 616 617 diesels.
also you can go to a thicker oil. sometimes this will help a seeping seal.
good luck
tom w
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[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.  [SIGPIC]
..I also have a 427 Cobra replica with an aluminum chassis.
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