Is timing chain replacement even that much? It looks like the parts aren't more than $200, and it should be around a couple of hours for a competent mechanic (maybe two competent mechanics) to replace it all. I would have thought it'd be more around $500-$600... Unless you're willing and able to try doing it yourself :-)

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'81 300TD Wagon 355k (Miss Diesel)
'83 300SD 180k
'84 500SEL 190k (Parting it out)