Date registered: Sep 2004
Vehicle: '87 300TD/'90 300D/'94 Quattro/'89 Vanagon
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Those blue streaks on the rod journals are not a good sign--heat, and lots of it. You should be able to mic the cylinders with a taper gauge to determine whether they'll take to simple honing and re-ringing. Having attempted to use a DIY ridge remover in the past, I strongly recommend having this done by a machine shop. Have them professionally mic and hone the cyls while they're at it. The preferred short block refreshing consists of new cyl liners, pistons, and rings, which is big big big $$$. I've successfully completed literally dozens of simple rings n' rod bearing "rebuilds" on VW gas/diesel engines, so theoretically this should also be possible on an MB.