O.K. Talked to owner to get clarification. Car will move when manually shifted from 2 to 3. When shifted from 3 to D it will not upshift into 4th. Valve bodies and pressure regulators are being floated as possible culprits.
Any other thoughts? I'm really liking this 300E and will pull the trigger if the worst case scenario is not that bad. I know, I know: What do I expect from a $500 car? Apparently a lot.
But I've been wanting a W124 for a long time.