Here's the update on the 240D. The parts came in yesterday and I just finished putting in the new water pump. While I was at it I changed both fuel filters and the air filter. I went ahead and filled the radiator with a coolant / water mix at a 50/50 ratio and started her up. Amazingly, she seems to be running fine. I ran her for 20 minutes in traffic and she never got over 90 on the temp. There doesn't appear to be any loss of performance (as if she ever had any to begin with...) or water in the oil or oil in the water.
This is one tough little engine...
Thanks for the replies
1983 240D - 140K miles