You have compression. You have fuel. What you don't have is spark, or your timing is WAY off. Check the cap and rotor. Don't overlook the EZL - when they fail they go flaky before failing completely. Just because the spark plug is sparking doesn't mean the spark is strong enough to ignite the fuel/air mixture.

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Current stable:
1995 E320 157K (Nancy)
1983 500SL 125K (SLoL)

Gone but not forgotten:
1986 300SDL (RIP)
1991 350SD
1991 560SEL
1990 560SEL
1986 500SEL Euro (Rusted to nothing at 47K!)

Gone and wanting to forget:
1985 524TD 167K (TotalDumpster™) [Definitely NOT a Benz]