To be fair, what you've already said would be my diagnosis,
But then again at 67,000 miles that engine should be fine, I would say it's the stem seals in that head from the scrappers, you've know idea where it's been and I bet it's see rather a lot more miles than the rest of the engine...
Has it been well maintained and warmed up and cooled properly?
To paint you a picture I bought my 306 Vivant TD from a peugeot dealer when it was 9 years old (1998 r plate) with just 25,500 miles on itand a full pug service history, its now on 77,000 miles on that engine and I never had a single thing go wrong with it..... nothing.... except I bust a rod, because I put a Garrett GT2560R on it... and I have a 205 1.8td and thats done 75,000 miles with service history, had to replace the rocker cover gasket on it and again nothing else went wrong...
so yeah Id say the head now if you're confident that the timing is now correct....
But then again at 67,000 miles that engine should be fine, I would say it's the stem seals in that head from the scrappers, you've know idea where it's been and I bet it's see rather a lot more miles than the rest of the engine...
Has it been well maintained and warmed up and cooled properly?
To paint you a picture I bought my 306 Vivant TD from a peugeot dealer when it was 9 years old (1998 r plate) with just 25,500 miles on itand a full pug service history, its now on 77,000 miles on that engine and I never had a single thing go wrong with it..... nothing.... except I bust a rod, because I put a Garrett GT2560R on it... and I have a 205 1.8td and thats done 75,000 miles with service history, had to replace the rocker cover gasket on it and again nothing else went wrong...
so yeah Id say the head now if you're confident that the timing is now correct....