Hi fosdike
bottom line is I'm removing the head again. I took it off the first time due to a burnt exhaust valve on cylinder #2. Had the head reconditioned and reinstalled it myself. I had the injectors cleaned at the same time as I suspected that cylinder # 2 injector was not working properly leading to lean running in that cylinder and the burnt valve. I had the valve clearances checked by an experienced mercedes mechanic and he re-calibrated the fuel pump at the same time. It had been running quite well prior to this plug fouling episode. I checked compression following the re installation of the head and they were sound, not like brand new, but sound and consistent across the cylinders.
I've decided to pull the head off again as when looking at it all on Sunday on a cold engine, I had coolant leaking from the head gasket as well as the oil going out the back, so I'm suspecting a gasket failure. I'm putting this down to my incompetence when putting the head back on. I may have either damaged the gasket or I didn't do the head tightening sequence correctly. I didn't do the stage of initial warm up and retorque straight away, I don't know how I missed this stage, but I was thinking at the time that retorquing the head was done after a few miles not straight away. Just stuffed up I think. For the sake of $130 for a new head gasket and a few hours of my time, I'm going to give it another go. And while the head is off I will be able to see if any real damage has been done to cylinder number 6. It's possible that everything is fine and the oil control ring has let go, but with the coolant leak coinciding with oil out the back, I'm suspecting that the gasket has failed somehow - could be wrong, will let you guys know.
photo of coolant leak