Sorry for such a late reply, I haven't been very active recently. No, I never resolved the power issue. I ended up getting the transmission shifting very nicely... until a few weeks ago when it started slipping. I was looking into taking it apart and fixing it, but I ended up just getting another mercedes.

So, now I have a, '84 Turbo 300D-- which I aim to be driving it within the next couple weeks (My 1949 Dodge has been my daily driver, and my 80 mile commute to school is kind of nerve-wracking, not knowing if something will fail).

Time to start a conversion from US-style stuff, to Euro on the new slug!

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1984 300D (Turbo)
1949 Dodge B-1-C 3/4 Ton truck
1985 Euro w123.130 300D (Naturally Aspirated)(bad transmission)

I have studied many philosophers and many cats. The wisdom of cats is infinitely superior.--Hippolyte Taine