Jim:

When are you going to open your own shop? Sooner or later you are going to get in trouble working on other people's cars in your garage....

I'd imagine that 300E was running hot! No way that thermostat was opening at all!

Valve guides will be shot, so will the valve seats (regind time). Common problem on that engine, particularly the early ones.

I'd leave the bottom alone unless it also had low oil pressure or the liners show excessive wear from the oil consumption, the normal thing at about 160,000 miles is to do the valves. Check the cam and rockers, too, the one in the TE was shot along with bad valve guides. This was done before I got the car.

Rear seal is, I believe, a rubber ring seal, can be replaced by removing the flywheel, not a rope type.

Peter

__________________
1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!