Has the wiring harness been replaced -- this is a warrenty thing, I think (bad insulation)?

Otherwise, likely a bad TDC sensor (rear of engine) or a bad ignition unit, possibly bad coil(s) or wires.

Peter

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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!