For a few grand (and some shopping around) you can get a pretty nice 300D. Go for the 81-85 model years; those came with a turbocharger. As far as I know, the general consensus is that 1984 was the best year. If you're lucky you might find a 300CD, which is the coupe version of the 123 body style. If you're interested in more information on exactly what to look for in these cars, take a look in the "Diesel Discussion" group.
Beware, though - once the diesel gets in your blood, it takes root and it'll never go away
- Nathan
'83 240D "Steiner"
'00 New Beetle TDI