Think bout £800 for bearings/gaskets/seals/rings. Then what ever else needs to be replaced maybe valves, repair to cylinders, so it could get expensive
I think a replacement engine is the way to go or you could get a rebuilt engine from Crewe for about £3000.
S320 engine code is OM642.930. I've been told that other OM642 engines should fit the S-Class, for example the E320 has a OM642.920 engine, this engine has a different sump pan and something about the vacumn pump location, but I've been told it "should" be compatible.