I just went through this issue myself.  My #1 valve seats were blown out,
there wasn't even a lip to put the valve seat into.  Machine shop suggested
the same as your mech.  Due to the cost to fix it...which he could, it would
be less expensive to get an aftermarket used head (AMC) at a VW Yard which
cost me $75 (other yards were asking $125).  The guy at the yard suggested
this would be a better alternative also.  I picked up the exhaust valves at
a VW Parts retailer here in Sacramento, CA which saved me about $40 over the
machine shop price, but I had the Machine shop supply all other parts.
Including the dunking/cleaning of all 3 heads and some various other small
charges I was out the door for $396 for two rebuilt/machined heads.  I can't
recall the exact cost I recieved for New heads from the retailer, but it was
somewhere around the $800 range.  Although it wasn't fun taking the heads
off of a 23 year old engine I opted to have both heads done instead of just
the one problem head.  I have heard from many that the seats were a major
problem and wanted everything to be fresh on both sides of the engine.  I
hope I'll know the meaning of life after I get my engine running and my
Westy driving :)

Neil
'80 Westy

----- Original Message -----
From: "jon" <jon@KENNEKE.COM>
To: <vanagon@GERRY.VANAGON.COM>
Sent: Tuesday, August 26, 2003 9:53 AM
Subject: Cost/rebuild on 2.0L Air Cooled Head

> Hi folks...
>
> I was just calling around to machine/repair shops about getting a new
> valve seat installed in a 2.0 air cooled head. The VW shop told me these
> were throw-away heads, and to buy a new one for $349.00.
>
> The machine shop said he might be able to fix it, but would have to take a
> look at it.
>
> So, anyone have any thoughts on:
>
> 1) Getting one of these rebuilt
> 2) The cost of a new one
> 3) The meaning of life?
>
> :-)
>
> Thanks,
>
> Jon
>
> '80 Westy
> '83 Vanagon Diesel