Although I too suspect head gasket, could it be a leaking heater core? Smell of coolant, wet carpet, foggy windshield?

Also, I think your picture is showing a leaking valve cover gasket and/or timing cover seal. That timing cover seal is a common leak.

I just did my headgasket on my m103 and didn't have the valve guides replaced. The machinist who did the head for me said they were solid. The valve stem seals were a must though.

Other parts to consider:
cap & rotor
plugs & wires
head bolts
bypass hose (short hose between thermostat and head)
coolant

Just out of curiosity, how much did you have to pay for the head gasket job? All the posts on the job I have read could be outdated by a couple years. My mechanic is somewhat less expensive than most and lets me bring my own parts, but I would still like to know roughly what a job like this would cost.

As far as the valve guides, should I order 6 of each?

Finally, is the head gasket a job that can be easily tackled with the right tools? I read the DIY article on the m104 and assume the head needed an engine hoist because it was so much larger that the m103, so is it possible to lift the m103 head by hand with 2-3 people?

I agree. And, it is also a good time to replace the motor mounts, since there is ample space with the intake out of the way. I just replaced my head gasket in September and the valve guides were also solid, but they did replaced the valve stem seals, did a valve job. and resurfaced the head.

My problem was oil in the coolant...I'm glad I jumped in and removed the head right when it started so not to cause any further problems. My do it yourself head gasket job cost me $1,000 in parts, including new engine mounts, transmission mount, other parts that looked suspicious, and machine shop work.

It is an easily do-able job for a DIYer with a little knowledge and this great Forum!! Form what i've been reading, the valve guides are usually good and the valve seals just need to be replaced. You can check the guides once you get the head off by rocking the valve side to side in the hole, If they're nice and tight run em.

Exhaust studs/nuts/washers and an exhaust gasket set.

Thanks for all the info thus far guys, I really appreciate it.

Its also comforting to know that DIY with all this stuff replaced its only around $1k - luckily for me, I have replaced in the last 3 months everything with the exception of the engine internals (and the coil pack) including the motor mounts and the bracket on the driver's side (never seen a steel bracket that had snapped, literally, in half before).

The one thing I am concerned about in tackling this job, is how heavy the head actually is. I know I can take apart everything thats involved, I just don't know if I can get the head out if its ridiculously heavy.

I did the work myself. However, I paid $145 to a machine shop to clean and resurface the head, 3-angle valve job, and install new valve seals.

I wouldn't buy valve guides until you know you need them.

I think the job is very doable for a confident DIYer. You need time, a good torque wrench, right tool for head bolts, a repair manual/CD, and this forum.

You can lift the m103 head alone. I think it's about 50lbs.

IMO, I wouldn't initiate a head gasket repair until you're confident it's leaking. slk230 and I both had oil in our coolant. It was obvious to us. Have it pressure tested or have a professional look at it.

Based on your last reply, you can definitely do it. Find a trusty machine shop for the head work.

Also, be careful when removing a pin that goes through timing chain rail into the front of the head. It's easy to damage the timing chain rail which creates a lot more work.

Yo boss
 

Apparently he says the head is only 50lbs. I looked at the Workshop Information System CD I have more closely, and it looks doable if you have the time to do it. My old man comes back from Seattle on Fri, I'll run it by him. Looks like you'll just need a good torque wrench. I'd take it to the greenhorn and see what his diagnosis is. Could be something real simple.

I have had the same problem with my 86 300E for a few years now. It turned out to be a leak in the heater core. It waas only recently that the leak was bad enough to drip while the car was parked. I bypassed the core and now I am not loosing any coolant. You might check that before tearing into the head.