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I'd say-
Reseal the compressor and replace the evaporator yourself. THe evaporator is a long job- expect it to eat a weekend.
M103 and M104 engines have headgasket problems eventually.
Their evaluations reflect dealer pricing to me. Many dealers offer discounts to members of the MB club=) You can ask and possibly get the parts for 20% off. Also, those prices are somewhat negotiable I'm told.
Michael
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Michael McGuire
83 300d
01 vw A4 TDI
66 Chevy Corsa
68 GMC V6 w/oD
86 300E
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