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If you really need great fuel economy you will need to look a bit further afield than either of these two vehicles - a VW TDI would be your best bet. I get 46mpg on average in my Jetta TDI wagon, my friend gets 51mpg in his Golf TDI.
The 350 does have a bit of a reputation, I cannot tell if it is deserved or not, but it probably won't do as well as the e300d for economy. EPA numbers are 28/35 for the e300D and 22/25 for the 350SDL. Both are an improvement on your truck, but not exactly a huge leap.
Kevin
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'85 300SD
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