My 85 300 TD has not had a valve adjustment for over 30K miles, and I realize that having this done would be a good idea. Mileage, after a purge and changing all the filters is 24 mpg around town on dino Diesel and 22 on B-100. The engine starts immediately and seems to have a lot more pickup at some times than others.
I noticed a small amount of oil in the air filter holder, about the amount I could wipe out with two paper towels after 10K miles.
I am thinking that I should have the valves adjusted and replace the valve seals.
I took it to an indy shop a friend told me about and the head honcho tells me that he will adjust the valves for $350, if I provide the gasket, but he says he no longer will replace the valve seals. I tell him that I have heard that this is not a difficult problem and ask him why. He just says "I used to do this", mutters something about the car being old, and says "I do not choose to replace valve seals".

If he had a reason, he would not tell me.
I tend to think that $350 plus parts is more than a bit high, and there were several things about this guy I noted when he was talking to another customer that failed to inspire any confidence in me for him

. As a rule, when I have doubts about the body language and the way someone talks, it has always turned out badly

, so I pay attention to such things. This guy was not a Joe Isuzu type, but he was secretive and seemed to be talking down to me, and I hate that. The friend that told me about this shop has never had any work done there, nor has anyone he knows had any work done there.
But the deal is that (a) I would like to get the valves adjusted and (b) I think it would be a good idea to have the seals replaced. So my questions are (1) will either of these improve mileage? and (2) what is a fair price for the labor on this job?
I am not all that inclined to do this myself, because I am not sure of how to turn the motor to get the valves in position and I don't have the special tools. I'd rather not get in the midst of a job and not be able to finish.
Is my diagnosis about the valve seals needing replacement valid? I have records for the past 150K, and this is one thing that is not mentioned.
The car has 206K. It's a 1985 300 TD wagon.
Thanks a bunch for your help!