I bought a '77 300D for $250 a few months back. Engine had a broken chain, so it was trashed. Had 4 new tires (with rubber pimples still) and brand new rebuilt injectors. I got a pretty good deal I guess. The car has an excellent black interior, which unfortunately I don't currently need.
With it, in the trunk, was a package from Performance products. There was a brand new timing chain, tensioner, large guide rail, two lower guides, 5 brand new glowplugs (pencil) and a 617.912 engine manual.
A deal that actually worked out!
If the SD runs, or if you could make it run, that would be a fantastic deal. I would have a hard time laying down $800 just for a parts car though, but then again you would have tranny, starter, alt., half shafts maybe, etc.....

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Jimmy L.
'05 Acura TL 6MT
2001 ML430 My Spare

Gone:
'95 E300 188K "Batmobile" Texas Unfriendly Black
'85 300TD 235K "The Wagon" Texas Friendly White
'80 240D 154K "China" Scar engine installed
'81 300TD 240K "Smash"
'80 240D 230K "The Squash"
'81 240D 293K"Scar" Rear ended harder than Elton John