I know how to convert KM to M, and that's still a crapload of miles. As a comparison, I've got a 1998 SL500 with 56k on it, and a 2001 SL600 with 28k on it. You can find nice low mileage examples all over, why buy one with 110k already on it?

That looks like a lot of water in the oil to be caused by condensation, you can see where the oil/water mixture has actually been frothed by the internals. I'd be worried. How does the coolant tank look? Any oil film?

And lastly, as you noted, it's been wrecked. Why buy a wrecked car? You're making an expensive bet on trusting that all the work was performed properly, and that the frame is aligned right, and that there won't be any leaks with the replacement glass, etc., etc. I've rarely seen a wrecked car turn out anywhere close to as good as new. A lot of them leak, make funky noises, and don't handle right. I just don't get the logic, why deal with that?

I dunno, I would just save up and get a *real* one, not a busted up wrecked one with 110k miles, glass in the seats, etc.. This is a nice one:

http://cgi.ebay.com/ebaymotors/1999-Mercedes-Benz-C-Class-C43-BLK-RARE-4YR-WARRANTY_W0QQitemZ120416231941QQcmdZViewItemQQptZUS_Cars_Trucks?hash=item1c095de205&_trksid=p4506.c0.m245&_trkparms=72%3A317|65%3A12|39%3A1|240%3A1318

Remember: "Nothing's more expensive than a cheap car". That really holds true most of the time. There's a big chance that you'll wind up putting more money into this car than you're going to save on the purchase price, and when you're done you'll still have a wrecked car.

Obviously, you're going to do what you're going to do anyway, but IMO I would steer clear and keep looking for one with no issues.