I would take the 130K SD engine and trans. No need to add headaches of converting from a W123 into the swap. The SD engine sounds like it needs a home, anyway.

Pull the engine and trans as one unit.

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1991 F250 super-cab 7.3 IDI. (rebuilt by me) Banks Sidewinder turbo, hydroboost brakes, new IP and injectors.
2003 S430 - 107K
1983 300SD - Tanoshii - mostly restored ~400K+.
1983 300SD - Good interior. Engine finally tamed ~250K.
Monark Nozzle Install Video - http://tinyurl.com/ptd2tge