Short answer, no.
Long answer, yes, but you will have to convert it to a 2.6 body in the process, and then have to remove the radiator to change the belt, etc. My mechanic hates to work on the 2.6 (smaller version of the 3.0 six) -- no room.
Probably not worth it. I would trade for a 300E instead.
Peter
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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!
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