I have a 1987 300d and three months ago it started putting out massive amounts of blue smoke. I took it to my local mechanic and he said that he could take the engine apart and fix it. I was kind of surprised that he agreed to take it apart, and he said he had never done a job like this before and I probably should not have let him. It took him a month to do it.

Anyway he took the head off and the head gasket had holes in it. He showed it to me, definitely leaking.

After it was all reassembled it is not as quiet as before. Not ridiculously loud, but it used to be really quiet for a diesel.

Also it does not start as easily in the morning, I have to use the glow plugs for the max time, and even then it barely starts, sometimes dies, and makes a massive cloud of smoke at first. It didn't do that before the head gasket was replaced. Also it makes a little bit more smoke while driving than before.

I am wondering how good of a job they did, and if I should ask them to take it completely apart and redo it better?

Everything in the engine compartment is covered with oil, including the alternator and the right side of the top of the air filter cover.

How can I tell if the head gasket is functioning properly?

When I jacked up the car and looked up at the engine, I saw this. It kind of looks like oil is leaking out....Is this the head gasket leaking? Or something else? Looks recent...



Also there looks like there is an exhaust leak here, in the middle where the black is. They took this apart, should tell them they broke it and fix it, or is this something I can easily take care of?