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I had similar probs with a 205 tdi and we tried various fixes. Main thing was to check water level daily and top up. It used gallons of water but still ran well My main concern was no water and consequent seizure.
In the end I got a new head gasket but an expensive job with a turbo bolted on in labour terms.
I'd say try the fixes first and it might be OK. If not - well pay up or scrap!! david
peugeot TD engines are a nightmare for head gaskets,dont ever let it overheat,carry plenty of water wherever you go.They warp cylinder heads very very quickly
Got a similar problem with the Toyota Previa, and was looking around at some products
one of the cylinders is letting water in, so is misfiring on start, and quite a bit of smoke (unless I drive it every day) but runs ok when running and warm
only paid 950 for it, and its 500 for head gasket replacement, I know they mentioned a product over on the Shogun forums that is supposed to be pretty good but the name eludes me for the moment (it is from the states too I believe)
Mine is losing about 3 pints of water for 5-10 mile trips from cold
Could always try putting a touch more torque on the head bolts*
Tighten in a cris-cross patten. Like you should do with wheel nuts.
*will not be held responsible if a bolt shears off
Pug 1.9 diesels are common for it. Lack of coolant changes is the main curlprit - old acidic coolant eats the gasket. Simple job, somewhat labour intensive as its typically French with everything being positioned in a ****-eyed manner. Not as bad as doing the same engine in a Pug Expert van....bad back anyone?
I have always found that once a head gasket gets a small leak, it will only get bigger and have never found a way to plug it successfully yet. Too much pressure to keep in.
What about my Previa SM, bleddy engine is under the drivers seat as its midmount
Book time is 8 hours to change the head gasket on it (its a 2.4 petrol)
Never worked on one. Done a few Bedford/Isuzu Midis and LDV/Nissan cubs/vannetes, and despite being mid-engined, its dooable as the access hatch is big enough or the entire seat box can be removed.
Just googled and found pic of previa access - oh dear looks like engine has to be dropped out from underneath, or dropped down onto axle stands/ blocks to get enough access to it.
Something tells me Toyota didn't quite think the design through very well with teh Previa Oh well, Espace is no better, and they go wrong a lot more often
I did have the drivers seat out and access panel (ttok bleddy ages) so I could change the spark plugs thinking it was those originally
Yes not the best thought out layout, but then I have no idea if they changed the access on the newer generation models (mine is the 1st generation 1996 model)
Head gasket blown - Thermaseal type quick fix?
My main concern was no water and consequent seizure.
Oh well, Espace is no better, and they go wrong a lot more often 
