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$1600 is reasonable. I paid 500 for the m103 3.0L thats in my car now. I had it put in for about $800 or so.
As far as I know all m103's will need head gaskets at some point in their lives, so you might be swapping in a good m103 and moving the problem down a few years. But at least you would be doing the future hg job on a worth while engine.
I think you will like the performance increase. I did.
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