2015 S550, 2010 E350 P1/P2, 2002 ML320
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2,672 Posts
From the information you have given it is not possible to tell whether the mechanic is being straight with you. As an example, the problem could be as simple as leaking valve cover gaskets which should cost close to $100 to replace or as complex as a leaking head gasket, which would require many more hours and will likely be close to the cost you mentioned. As for the idling, I have had several Mercedes of that vintage and they go through fuel injectors every few years. Again, no real way to tell what the rough idle would be without more information.
You will probably get more interest in this problem if you post in the W126 forum instead of this one, as your car is of that body style.
You will probably get more interest in this problem if you post in the W126 forum instead of this one, as your car is of that body style.