I would guess excessive blowby, but a bad leak somewhere (like turbo seals) would give terrible oil consumption too.

Stalling on engaging gear can be as simple as bad fuel lines allowing excessive air into the lines, or idle speed screwed up.

Unless the tranny is toast, another engine is only $1500 or so these days, and you may onle need to fix the turbo.

Get a compression check done, check the fuel lines (suction side between the standpipe and the lift pump) and see what you have.

Basically, the body looks excellent, the radio can gille can be replaced fairly cheaply, and the interior isn't bad, go for it, I would if I didn't alrealy have too many cars to keep track of!

Peter

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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!