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Yeh it'll be the valve seals. Get those done first before removing the entire head because at that point you "might as well" get the head rebuilt with new valve guides/seals/ head gasket etc..which will be $300-$500 worth of parts + labor at machine shop...or $15 for the valve stem seal kit.
I believe my valve guide replacement on my 87 260E was a success (search my name for the thread). I have not noticed any smoke upon acceleration when the engine is cold.
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2016 Monsoon Gray Audi Allroad - 21k
2008 Black Mercedes E350 4Matic Sport - 131k
2014 Jeep Wranger Unlimited Sahara - 62k
2003 Gray Mercedes ML350 - 122k
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