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Jim:
Take a look at the tips of the lobes. Typically the tip will wear first, giving it a flat profile rather than rounded. Wear on the rockers is typcial Benz wear -- grooves, slots, or a flat spot instead of the slightly rounded profile.
The notation on the work orders was "needs oil changed more often" on the TE, so I would expect the one you are working on to be fine.
If the crosshatching is good, I'd leave the bottom alone, it will is supposed to be as good as the M117 -- 500,000 before it needs rings.
When you put the front cover on, here's a couple hints:
The seal goes in bone dry -- no oil, no grease. A dab of RTV in the corners by the head only. Slot must be perfectly clean.
Lightly grease the botton of the cover where it will slide over the seal.
Install by pushing down on the seal to start it on the dowel pins, and keep downward pressure on it so that it goes straight back -- if you let up too soon it will tilt and twist the seal.
Use a mirror and check to make sure the seal isn't twisted before bolting up -- remove and try again if it is, otherwise it will dribble oil down the block again.
Peter
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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!
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