That makes some more sense. Verify that the fuel isn't in the oil and report back. After that, I stand by my earlier suggestions.

The timing chain has no specified interval for service. As long as you measure it and it is not overly stretched or shows obvious signs of wear, its fine (search for more info on this, Im not an expert by any means). I dont think you need to leap into rolling a new one in.

Seeing as how the car has sat for so long - the valve adjust and a purge could stand to make a big improvement.

dd

__________________
-------------------------------
'85 300D, 'Lance',250k, ... winter beater (100k on franken-Frybrid 3 Valve Kit)
'82 300D, 'Tex', 228k body / 170k engine ... summer car
'83 300TD Cali Wagon 210k, wife's car