About the going rate -- same job will be less expensive at an independent because the charge less.

I would guess that either the pump to block seal or the bottom pump cover is leaking, and fixing either one requires removing the pump. Obviously, it has to come off for the pump to block gasket, but it's not possible to remove the bottom cover with the pump in place, so it has to come out for that, too.

I'd leave it unless the leak is so bad you have to add oil all the time, and wait until the IP has to come off for some other reason. If you cannot live with the leak, you will have to part with the cash.

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!