That is a bloody absurd price just to do that.
> If the head is shot they are
> looking at around $2500 for just the head. If the piston were hit,
> don't ask.
The head is not worth that much. I sold my used head to the local
Peugeot dealer who had an Mi16 with exactly the same problem you have.
I charged him $400 for the head, which is what it's worth (I called many
Peugeot dealers around Ontario and New York State to confirm this)
For about $1,800 (no more) you should be able to get a decent used Mi16
engine (the whole darn thing) installed.
I paid about $1,000 for my used engine with 40K on it and installation
by the dealer should not run you more than $600-$700 (or else they're
ripping you off)
If I were you I'd go get a second opinion and keep an eye out for a used
head/engine.
Best of luck,
Robert Cullemore
89 405 Mi16