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If you are doing the work yourself I don't think I've ever spent over $100 for a crack check, valve check, and clean up/mill on an alloy head for a 3 or 4 cyl head. Just did an M103 and a BMW M30 and the machine work was $120 each. Headgasket set from the dealer is more than likely well under $200. (bought OM603, M103, and M102 sets lately all under $100 from the dealer)
I would just do the headgasket.
As someone said, what W203 is this? M111 or M112? Maybe we can point you towards the FSM pages or a DIY writeup for the HG job.
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