Only you can decide it it's a write off, as it all comes down to how much money you are willing to spend on it compared to a new replacement saw. Everything is repairable...just depends if you want to spend the money.
It will need a new piston and barrel, which on this domestic type Stihl chainsaw constitutes purchasing 90% of the engine components- unlike the construction methods of the pro Stihl saws.
Cost wise a new piston and barrel from Stihl is £150.00 plus vat. Labour is the killer, as it's a complete rebuild. Got to leave half a day for a proper job, so say four hours labour at around £40 an hour plus some vat and you can see it's not looking too good. Especially on a 20 year old machine.
pleasant, April 2013