But I'm been told to buy a 300tdi is around £1100 plus £700 plus for labour?
Is this about right?

Plenty of 300tdi discoverys about for less than that. Lots of conversion threads on here - quite a bit more work for the 300tdi, but as pointed out above, it should be easy to get a decent low mileage one. Heads for the 200tdi are becoming scarce, which could be a big problem in the future.
 
Just a thought - Gumtree 4x4 Ltd advertised some 19j engines recently on facebook - definitely worth a call. You might just get a bargain.
 

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