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I can't comment on the turbo engine, but the NA engine has an issue with resonance flaps on its intake - I'm very familiar with a lot of threads on this forum dealing with this issue. Not something that leaves you by the side of the road, but still an issue.
The '97 NA E300 did get the 5-speed. Don't know the EPA numbers on it though.
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Charlie
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'66 VW 1300 96K miles
'97 E300D 239K miles
'85 300D 203K miles (sold Sep 2012)
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