190E 2.6 Head gasket Repair

After 3 years of leaking oil, I am ready to commit to: Head gasket repair kit, Valve guides, and valve seals, plus new timing chain replacement while the head is off. Questions: Wouldn't I be better
off buying a rebuilt head, which automatically gives me a "head gasket repair kit" (head, exhaust, and intake gaskets) then add timing chain renew? Engine 1992 has 141,000 miles runs good, not great, some power loss , Also would there be any benefit to polishing intake ports, or any other horse power tricks that could employed a this point? (replacing all vacuum and emission hoses will be mandatory.......thanks .......Rick
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I think so, if the price is right.

No. This is not an underengineered Chevy 302.
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http://www.mercedesengines.net/categories.asp?cat 
http://www.mercedesengines.net/categories.asp?cat 
How's the rest of the car?
Worth the extra $$?
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The car is in about 70% of new condition good paint, euro-headlights. I was looking around on the 190 revolution site and was struck by the fact that very little has been done, or even suggested on how to up grade this car as compared with say BMW 318s and 325s. like direct swap 300 and 400e calipers or after market exhaust systems better than stock, struts and springs included. (I was told very few get their own head back anyway) and it might be the cheapest way to get head reconditioned, timing chain, and new head gaskets.....about 1500.oo ??
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This model would be an upgrade candidate in Europe but not the USA where it's more of a price slot model. In Europe it's the "right size" and its engine can be tuned.
Can't advise you about the economics of the head rework - collect some prices and decide.
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Do you have more information on how this engine can be tuned? Acceleration is good but lacks that new car pep, after tune up, as if slightly out off time, or not breathing fully. Vacuum is, (or was) 18 and steady. Compression check was I think was 160s psi and even. I didn't do a leak down (year 2000 numbers time for a re-test)
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Let's look at engine outputs over the years:
A 300E 12 valve produces 177 HP or 59 HP/L. A E320 24 valve straight six makes 217 HP or 67.8 HP/L (7% gain from size increase plus 15% from 24 valves vs. 12 valves)
The newest M-B engines are better
3.5L 24 valve V-6 268 HP or 76.6 HP/L 5.5L 32 valve V-8 388 HP or 70.5 HP/L.
A 2.6L straight six is in the realm of the 300E engine and should make about 150 HP, probably a bit less as it has to drive all the same parts, alternator, waterpump etc. with a smaller displacement. A "small block" Chevy 350 is a 5.7L engine - larger than the newest M-B 5.5L V-8. Temper your expectations from a 2.6L six. Keep it in good condition and tune and it will do its best for you. Use premium fuel and remember your car's relatively good fuel economy rather than its non-V-8 performance.
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