Rather short of power compared to the gas engine (since you won't have a turbo), but otherwise the only thing to watch out for is cracked head due to overheating. Won't usually fail unless overheated by that date of manufacture.

They also tend to blow head gaskets at about 200,000km or so, common problem on cast iron block/aluminum head engines, and I'd not let it keep you from aquiring the car.

Body is the last truly solid Benz built, no major problems.

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!