I don't understand why the shop says a month to fix the car. A headgasket on a M102 engine is a pain ( can take around 8-10 hours or so for a mechanic ) but the waterpump isn't that bad. Assuming that the shop can get the parts ( they may be special order from Germany because this vehicle was never sold in North America ), this job should take 2 days max. I could see this job being north of a grand because of the long labour times though.
It's up to you. Cut your losses now and and part out the Benz or put more money into it and hopefully it will run trouble-free for another couple of years or so. I know it's not an easy choice.
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