It's timing chain time on that car too. I think the engine had top oil tube problems but MB might have had that worked out by '97. I agree with John in that it sounds like it has had a hard life so far. If you like the E420, find another that is in better shape with the 'Starmark' package as protection against mechanical failure.
1994 E320 Wagon (Died @ 308,669 miles)
1995 E300 Diesel (194,000)
1999 E300 Turbodiesel (244,000 miles, dies at 255,000)
2006 Toyota Tundra SR5 AC 4X4 (115,000 miles)
2011 Audi A4 Avant (129,000 miles) hate this car!
BMW 330 xi 6 speed manual (100,034 miles)