I'd take a chance on the 500 dollar one.
There's risk. I bought a used auto trans once.....'it ran fine two years
ago when I pulled it.'
It was pretty bad..pumped gear oil into the differential area ..
but the first option doesn't sound that good.  A good welder can weld a
cast iron bell housing..
but keeping it perfectly to dimension is difficult.
   I had a really good welder friend weld a cast iron turbo diesel block
for me once..
it came out perfect, like a 12 hour process of heating it, welding it,
cooling it slowly for hours in sand.
   I had to 3 thousandths machine off the flywheel end to get it right.
It was great after that though.
     Just saying ...cracked bell housing ..
time to move on .
   I wonder if that model has the rare slightly higher gearing R & P.
There are a few of those in and from Europe.
That would make that R & P at least, valuable.

scott

On 5/7/2012 2:25 PM, David Beierl wrote:
> I've got an '89 White Star with ~160k miles on it.  First gear whined
> when I got it, and very soon after it started being reluctant to
> shift out of first on the first start in the morning.  Transmission
> serviced, no difference.  ~15k later, over this past winter first
> gear is louder, second is starting to whine, morning sickness is
> worse.  Otherwise behaves beautifully.
>
> Local highly recommended transmission guy put it up, noted
> non-standard bolts (double-nutted studs, looked like to me) on right
> side, right side 2-3 mm separation from engine, noticeable leakage
> from final drive.  Bell housing is cracked, believed weldable.
>
> I have a line on a complete drive unit removed with engine from a
> body-rotted '89/90 three years ago, engine still running well in
> another van.  Stated to be in good running order at the
> time.  Available $500 at the shop in South County where I used to
> take my '84 back before I found the list.  New owner but lots of vans
> in the yard.
>
> I don't feel up to R&R right now.  Estimated cash price by
> transmission guy or by my local shop ~$400.
>
> Suggested courses of action?  The German Transaxle unit is out of my
> reach at this point.
>
> Thanks,
> David
>
> --
> David Beierl -- dbeierl@attglobal.net
>