Bad News!!
I did not know those radiators were put on w209 cars, too. I knew they were on the w203.
How did you find out? It sounds like the indy didn't do a glycol test at the time? Did you have one done later on? Very few cars had problems with the valeo radiators. Even by forum standards- every single person mentions their failure but no one mentions their car is fine- the numbers seem low.
$850 sounds a slightly high for the job, but not terrible. The transmissions flush will require a lot of fluid if they do it right - basically around 20 quarts for two complete fills. Unless the indy gets fluid at a good price, it's usually around $12/qt (sometimes you can get Shell ATF-134 for about $6). So with about $200 in oil, another $80 in parts (filter, bolts, gasket, coolant) and about $250 for the radiator, that only leaves $350 for labor - about 5 hours at typical indy rates, and that sounds about right, maybe $100 too high if at all.
As for DIY, it's not a bad job. It would probably take me the better part of a Saturday to do, and I'd still be spending $400-$500 in parts. So, I might be inclined to just let the indy do it. Maybe you should ask them to give you a discount since you did just have the car serviced there and had they caught the problem then, they would have at least saved the parts and labor on that transmission service.
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