Of all the 98's and 99's I've seen with that kind of miles have had to rebuild the transmissions (eBay store has rebuilt 722.6's for around $2000). If I were buying that one I'd consider a rebuilt IP as well as a new head gasket. Might as well check the whole valvetrain while you're at it. My '98 has about 110k miles on it now and burns practically no oil so I think you might get lucky and not have to worry about the engine until another 100k miles!
I'd definitely recommend getting someone to check it out for you if you are not local. The W210 chassis is very prone to door and trunk rust - many dealerships were repairing it for free (mine had brand new doors installed when I bought it about a year ago).
If you were to put $4k into that car, you'd have a very solid ride!
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Scott C.
2006 E320 CDI (120k miles)
FOR SALE: 1998 E300 Turbo Diesel - Black w/Tan Leather - Euro delivery (236k miles)
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