Hoping that adjusting the valves would miraculously make the ticking (or sort of knocking) go away in the engine was foolish. After all, the PO did tell me the engine was blown. Yet after getting it home and getting it running it just sounded pretty good at low idle. Oh well. Take a look at this video taken today after I drove the car for about 30 minutes. Definitely sound like it spun a bearing to me.

http://www.youtube.com/watch?v=J7TXT7Z0JAk

So the only engine I have been able to locate locally for a 240d is from a year 1977. Mine is a 1975. The 1977 would be a 123 chassis and mine is the 115. Still, the wrecking yard who is trying to sell me this motor swears that this engine is a direct swap according to his records and manuals. He is guaranteeing good compression, no oil leaks and said they will run the engine for at least 30 minutes and make sure everything checks out OK. They want 500 dollars for the the entire long block. I am not really sure what is different and what would need to be changed. Any help or advice would be great. Chris