Larry,

Thanks for your advise. The compression test or better yet leak down is a good idea before digging in on engine work. BTW, the engine is the 104. Does any one know if these 104s were known to have early failing valve stem seals as were common on some of the early 90s MB straight sixes (e.g. 103 engines)?

The suggestion about the bad head gasket puzzles me. I did't think/know that a bad head gasket manifests itself with external oil leaks. The car shows no signs of a bad head gasket and there are no external oil leaks. Also, the front timing cover seal is not leaking and appears to have already been replaced (signs of non-MB sealant evident). I will ignore the bad head gasket suggestion unless someone else suggests otherwise.

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1972 450SL
1982 300D Turbo