Yes, it's almost certainly a hydraulic problem. If the car has set for awhile, you'd be best served by rebuilding master and slave cylinder and flush fresh fluid through it. If you're really lucky, you might get by with flushing well, followed by bleeding. Ensure that there is clean fluid in clutch and brakes.
The ticking valve will probably be taken care of by adjustment. But a few frequent oil changes, draining while hot may be necessary to degunk everything.
If you purchase this car, you need to give the timing chain system a thorough inspection. Your best bet would be to replace chain and rails to prevent big buck damage.
The car really sounds neat. Of course, I'm prejudice toward stick shifts. If it's a Benz and has a stick shift, it gets my attention.
'84 Euro 240D, 523K miles
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