No wonder it doesn't run, its got no compression.
Well I don't know what the specs are for the natural 617, but here they are for the turbo charged engine. They should be about the same, if anything slightly lower for the turbo engine. I beleive the compression test should be done through the injector holes.

Normal 24-30 approx (350-440 psi)
Minimum 15 (220 psi)
Max difference between cylinders 3 (44 psi)

Test should be done with coolant temperature at 80C, ie engine up to operating temp.

I hate to say it but if the test is done correctly the engine is shot. Do a leak down test and see if its the bottom or top end. You might be able ot get away with a valve job. The cheapest option would be a junk yard engine, but thats a roll of the dice.

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2006 CL500
2009 C300 4matic
1969 280SE
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