Valve guide seals if it actually burns, but check the oil filler cap seal and the valve cover gasket for leakage. Also the front cam cover -- it leaks on these cars, not usually enough to drip much, but enough to loose oil. Oily front of the engine, with a trail down the side under the exhaust manifold is the front cover.

One thing I've discovered is that a leaking oil filler cap can cause oil consumption of upwards of a quart in 1000 miles, visible only as slighly "wet" valve cover and some minor oil on the driver's side of the valve cover gasket. Only leaks at high rpm (oil thrown off the cam), so it won't drip much. Oil consumption goes WAY down when replaced - I was putting a quart in the TE every couple months till I replaced the cap this July -- haven't added any since (unknown milage, it's my Mom's car).

Peter

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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!