These guys are giving you excellent advice.
I would just add that since these 2 major repairs haven't been done, just make sure that you are willing to spend the money on them when the time comes. The harness is now $900+ without labor, and the head gasket I would think has to be $2000+...
I have a '95 E320 with 78K and I think it might be one of the finest used car values out there. The thing is just built like a tank with nice fit and finish. It's been in storage for about a year because I need to do the wiring harness. Mine has rot to the point where you can drive the car and park it--come back 10 minutes later and it will not re-start occasionally. I have decided to spend my economic stimulus money on the harness
Good Luck,
-GH