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Look for electrical weirdnesses which would be wiring harness problems. Oil leaks could be the common head gasket. Transmission issues are created b/c it's supposed to have "lifetime" fluid which kills the tranny early - change the tranny fluid. Musty smells from the AC would be an evaporator leak.
But the reality is, don't freak yourself out from what COULD happen. Drive it, fix what needs fixing, and drive it some more. You got a great wagon that's the best year for the w124 - it'll serve you well.
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- Brian
1989 500SEL Euro
1966 250SE Cabriolet
1958 BMW Isetta 600
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