Larry, you beat me!!! I wrote my last response at the same time you sent yours!?! You answered some of my questions real time as I was thinking them up!! OK, what am I thinking now??

You're correct...I'm not sure what to do now.....maybe just flush and replace coolant, and monitor.

The oil in coolant problem developed since I started using synthetic oil (amsoil 15-40 diesel full synthetic), and my gut tells me that is the cause (??). I have switched back to conventional Rotella, although previous posts on this subject say this will not reverse the condition. Maybe I should use some real cheap 50 weight stuff with a lot of wax, although not good with winter coming!

My common sense tells me, if it walks like a duck.....etc. etc....I have a leaking head gasket, and I should combine valve job/sleeves etc. with head removal, gasket replacement...probably will do this next summer. With a couple little kids, I find that I just dont have the time to do this stuff, even though I really enjoy it. What is a fair price for a reputable shop to do the whole job...basically a valve job....including removing & replacing the head???? $2,000 yikes?? also, probably a full week or more without the car.

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1984 300TD Wagon, 407,800 mi (current daily driver)
1985 300DT Sedan, 330,000 mi (gone to that great autobahn in the sky)