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head gasket leak 200

hi,

purchased a 1981 240gl b23e with 450000kms on the clock and i have a few questions.

1) the car has a pulsair system with a crack in one of the metal pipes as it passes under the exhaust manifold, has anybody fixed these before? What did you do?

2) the car has a ?headgasket problem. oil in the coolant (cappucino colour). the transmission is cooled by a separate cooler but i am unsure whether this was installed before or after the oil in coolant was noticed.

there is no coolant in the engine.
the coolant expansion bottle does not overflow with the cap off and the engine running and there seems to be no bubbling here.
no smoke from rear end.
starts and idles ok

my question is should i remove the head and replace the gasket or should i do nothing and just keep my eye on the temp for a while?

3) the auto trans needs a flush so will Dextron III ATF be ok or do i need to flush with something else?

thanks,
chez






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