Sorry to hear that Joe. A 2003 w/58,000 should not be having anything that serious going on (my turn to state the obvious). Have you had to add any oil to it recently? If oil is literally "all over the engine" it looks like you would have gotten an add oil light. BTW, did you ever ask on the W203 forum in case this is a common occurance?
Skodas? Good one!
We didn't have to add any oil. I know the wife got the report from them but to be honest I didn't even read it. I've never trusted them there but what can you do. We're a small city on the Florida Panhandle. So car is sold now and I honestly could never recommend a MB to friends/family.
Hey skodas make good cars now, the buddy drives a turbo diesel back home in Europe and swears by it!!