I think the OP was pretty clear in stating that he was looking for a 2000-01 W210 4Matic, not the W211.

Back on topic, the 4Matic system in the W210 is not troublesome at all. I would never buy a W124 with the 4Matic but if I lived further North I'd be all over a W210 4Matic.

For the budget you state you should be able to find a very nice, facelifted 2000-2001 car.