I just ordered a starter from Advance for my 85 TD and it arrived with the same problem. Solenoid was on the bottom not the top. Talking to them, they concluded that their database was wrong and ordering a starter for an 84 instead of an 85 would result in the correct one. The called me yesterday and the 84 is in, but I haven't had a chance to go pick it up yet so I can't tell you if it is correct.
That rebuild is a good price, but I wanted the lifetime guarantee from Advance. The 84 was also about $10 cheaper than the 85.

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1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13