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I did one on my 88 535i a couple of years ago.
On that car, with the single overhead cam "big 6," it was a really straightforward job.
My head gasket was bad, but the head was still fine. I just put a new head gasket on, and it was good to go. Started in the morning, was done by dinner.
These cars are pretty durable, but they're not worth a whole lot, I'd be careful about too much "while you are there" stuff. If a new head gasket is all it needs to get another 50K out of the engine, I'd consider not dumping significant money into other things.
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