I am pretty sure the exhaust manifold is cracked through. The cracks appear at the bend just after the outlets on the manifold.
I will double check and post a picture later today.
I am thinking the PO was correct on blown head gasket. I can see that the water pump appears to have been leaking at the weep hole on the top side. The car is from Vegas andt there are lots of "surfer" stickers on the rear window tells me kids probably drove this and ignored the temp of the overheated the vehicle.
What should I be looking for on a overheated 240D besides the water pump and headgasket problem? Do the heads on 240Ds warp and need to be surfaced? I assume fastlane would be the best source for parts?
Thanks for the replies ...you will be hearing more form me as I dive into the benz.

Bennett