I've been casually looking for a car for my daughter. I'm not looking for perfection but I am looking for a safe, sturdy and reliable vehicle. I'm also willing to tinker a bit for the next few months so I am not in a rush.

I found a 1988 260E that has the following qualities:

• Body - no structural rust seen. small spot of rust under paint on edge of rear wheel arch. Hood has two minor dents with broken paint and beginning rust. Jack points were OK with some very minor rust forming on one.
• Windows & sunroof all worked. Right mirror was slow. Vacuum pump seemed to labour but worked. All gauges and lights worked. Tires in good shape. Spare set of rims available. Glass was all OK. Interior looked OK but the sun damage included the cracked wood trim on the transmission and some fading of the weatherstripping. MBTex seat covers were all OK except drivers seat with small hole and cracking.
• One owner car. 200,000 km or 120,000 miles. Owner said most of the maintenance records are available but were not provided when I checked the car. To be fair, I did not ask prior to dropping by.
• A/C is not working and is with original R12. No leaks observed at the compressor or the condenser. Fans work and control panel appears to be working.
• Engine started OK. No leaks under the vehicle. Oil pressure was 1.5 bar at idle and want to the stop by 3000 rpm. Vacuum appeared fine (economy gauge). Engine ran smoothly from idle through to 5000 rpm. I didn't want to redline the engine. No blue smoke was observed.
• It had a new water pump installed awhile back but still has original radiator.

Issues

• Engine does not idle well. It runs well enough but does not purr like my 300E. Owner said the mechanic (an indy) thought the problem lay in the fuel system and changed some parts with no effect. Mechanic told owner that the car was not worth further repairs to "get right".
• The owner revealed that at some point in the past that due to the use of regular fuel one of the pistons was damaged and therefore the engine was repaired by boring out slightly and using the next larger piston set.
• SRS light is on.
• Brake rotors are very rusty from sitting but E-brake held. The brakes, to me anyways, are suspect until the rust is removed
• Couldn't test drive the car because it was unlicenced. However, the car did not clunk in any of the gears while shifting into the gears while idling in the driveway. Car was able to move forward and reverse without any problem however the engine was not strong while idling and in gear and often died so it had to be babied a bit to move.
• Needs new driver's seatbelt as current one is stiff and does not appear safe.
• More than likely needs all fluids replaced - coolant, engine oil, brake fluid, transmission oil, P/S fluid, and rear diff.
• Probably needs fuel system cleaned - filter, at least.
• Needs new battery and windshield wiper.
• Needs major cleanup from leaves, pine needles, mouse droppings.
• Needs new rear muffler (could last a few more months).

Questions
What do you think of its value? Owner wants $1000 which seemed fair. However, while I know that it needs some work (that I can do) I am cautious that there might be a catastrophe lurking. Anything else I should inspect?
I'm curious about the poor idle -engine mechanicals? or electrical? or fuel system? The fundamentals look and feel OK but curious if there is something that I missed or am underestimating.

I appreciate your comments.

Cheers,
Paul