A very nice fix (if the engine is bad) is installing the later OM606 turbo from a '99 E300. Keep your mechanical injection pump, but use the engine/turbo/intercooler from a '99. More power, far more reliable engine. May cost a few grand, but you'll have a better car.

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Respectfully,
/s/
M. Dillon
'87 124.193 (300TD) "White Whale", ~392k miles, 3.5l IP fitted
'95 124.131 (E300) "Sapphire", 380k miles
'73 Balboa 20 "Sanctification"
Charleston SC