advice on 1972 250, bad cam

[Zeppo2K2]

Hi, new to this forum and have been collecting M-B for about a year. I just purchased from second owner a '72 280 off CL for $200 and was going to scrap it. Advertised as not running, I did get it going to put on the trailer. It has a great interior, minimum rust, and the trans shifts fine. However there was a loud clicking from the engine.

Checking the valves, all but two were too tight, #4 exhaust has a worn cam lobe about 1/8" grove cut by rocker, #5 has a cracked E rocker. What little information I have on the car's past: about 200K miles on clock but odometer broken, rebuilt head and "new" carbs at 170K by original owner. Second owner totally neglected maintenance, therefore the valve issues. I set valves, now the car starts/runs excellent, no clicking, compression 145-150 all cylinders. But I'm not going to run it without deciding to:

1. Change 2 rockers and cam. Get this cam reground, or is it too far gone with 1/8" grove? Or where do I get a new/used good cam?

2. Replace engine with 300D from a parts car. The diesel runs excellent as does the trans., and has 150K. Would this diesel engine fit?? Part out the gas engine, at least the almost new carbs.

3. Or should I just strip and scrap the whole 250 like I originally intended?

Any advice???

thanks, Ron

PS My wife sort of likes this car and wants to drive it if not too much is involved for it to run. Our other M-B's are early 70's 220D diesels only one running presently, but not her cup of tea. Compared to the diesels, this thing can really move. But we are not driving it at present because I want to flush the engine to get out metal should the engine get a new cam.