1988 300e/260e questions

[carnac]

Hello!

I just bought a 1988 300e for a very good price... there are a few cosmetic issues... but generally in good operating condition.... I registered with my insurance and the vin# shows the car is a 260e on the policy... there's a 300e badge on the back... is this kosher?

also there's no manual and a sunburst light (a yellow dashboard signal that's a circle with lines pointing out all around the circle like rays of the sun... what does it mean?

Thanks for your help

BTW I paid $1600 the odometer read 135.000 but I realized after I got it home it doesn't work... is this a bad deal?

Ken