Thanks for the replies. The heads were rebuilt, but it wasn't all they did. Price breaks down as follows;
- Oil filter and oil change: $43. 71
- replace lift pump: $ 216. 50
- replace diesel filter $ 85. 35
- replace air filter $ 47. 70
- replace front brake hoses $ 87. 74
- Parts for head replacement $ 937. 60
- Labor for head replacement $ 1195. 20
- rebuilt heads $ 1159. 87
- diagnosis parts and labor $ 86. 44
- replace broken wheel stud $ 36. 00
- enviro fee etc. $ 24. 87
- taxes $ 568. 56
Grand total: $4,489. 54
I talked to the dealer again yesterday and the best I can get them to do is warranty the heads (unless they can find a problem that caused the heads to fail) and split the labour bill. I expect that I'll end up paying about $1,500. 00 plus the time for the independant mechanic that I hired to diagnose the problem in the first place. I could live with the fact that the original big $ repair only lasted 10 months IF it stays fixed this time. I expect that I should get 60,000 mi out of an engine that has been fully checked out (compression good, etc. ) and has new heads, etc. etc. But if the damn thing dies again by this time next year, it is going to the autowreckers.
Replacing the engine with a cummins isn't a viable option. This isn't a truck that I drive personally and by the time I found an engine and paid someone to do the conversion, I would be way farther ahead just to sell it and buy a dodge/cummins. Unfortunately it is still cheaper for me to fix the 6. 5TD.
Dave