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I've heard that converting vintage gas Benzes to Diesel power is/was common in Europe. I believe they were transplanting the older 5/6 cylinder non-computerized diesels though.
I would check your area's emmissions regulations first, but most places aren't smog-testing mid '60s automobiles.
As for swapping a contemporary Mercedes drivetrain into a classic, see the thread 'Mechatronix 113' posted 10-23-2006, by Chuck Taylor on the Vintage Forum!
Happy Motoring, Mark
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DrDKW
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