I have a 95 E300D - what a fabulous car! I have no complaints.

AC is fine - never been an issue (I live in NC where it can get quite hot). Only time AC can't keep up is if I'm parked and idling for an extended period of time. Turning the fan speed down helps it stay cool...

As for MPG, during non-AC driving - I average 32-33 very consistantly - pretty much regardless of city vs highway (80 mph). I've never been able to go above 34. With the AC on, I average 29.

I have 217,000 on it (bought it new in 95), and change the oil every 7500 using synthetic Mobil 1. I also put in diesel fuel additive every fill up.

__________________
1995 E300D - 225,000 miles - White Exterior, Grey Interior - original owner