I have this 1982 240D with just 200.000 miles.The body is #1. So is the rest of the car. All but the engine. I did the the engine in myself. Some time back I pick ed up A bad load of fuel. It had alga growth in it. I did not know it till the engin ran poor and started to smoke. I changed fuel filters. open them up and found the alga. Not thinking I put some Bio guard in the fuel tank. Then some fuel system cleaner.As I am sure you know, That was A big mistake.The cleaner did its job. My engine blue oil out every where.All the dirt that was in places after 200.000 miles. was gone now.and so the oil comes out.I am so sad. I like my car , A lot. Now what to do?I have rebuilt older and mid years Corvettes.I have some spair small block engines and trans out of corvettes. I have built A few hot rods.I am thinking whats easier. Rebuild the diesel or repower it with the chevy????

I've never heard of biocide hurting an engine..... They use the stuff all the time here in all the boats. Used in the recommended way there should be no issues. I do know that once you have the "buggies" its almost impossible to get rid of them. Most of the boat owners I know put a treatment in every 4-6months just to be safe. You could have another issue. Have you done compression/leakdown tests? I would keep the car stock or at least MB with a turbo motor. Used 240 motors might be easy to find in the boneyard? That said I helped my english teacher in HS put a straight-six chevy/turbo350trans in a 240D that died on him. We had to cut up/fabricate an oil pan to move the oil sump forward but the rest was pretty straightforward as engine swaps go, fab exhaust, mounts, driveshaft, etc. The car ran pretty good with a gasser in it. He only did it 'cause he had a rusted out early 70's Nova with the donor engine and no money. It became a "shop project" as he was good friends with the shop teacher..... Can't recommend it but you gotta do what you gotta do. RT

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When all else fails, vote from the rooftops!
84' Mercedes Benz 300D Anthracite/black, 171K
03' Volkswagen Jetta TDI blue/black, 93K
93' Chevrolet C2500HD ExCab 6.5TD, Two-tone blue, 252K

"My engine blue (sic) oil out everywhere " .... What does that mean... ? What you have mentioned will not effect such things as the rear main seal.. etc....you need to do the tests RW mentioned... very good chance you have other issues which accidentally happend at the same time you did the liquids....
This is not really the place to get an objective opinion on this because this is a diesel LOVERS forum... LOL....really best to find used good 240 or rebuild yours... next best... 300 non turbo install ala Ben Ridge....then gas engines last place... I am not a purist... I am speaking from lots of swaps and know how much work small things can take to fix properly...they need to be from love, not practicality when done... time/money no object...
But if you were to put a gas engine in it... how about the Chevy four inline (which fit the same bolt holes as the 6 ).... about 156 cubic inches and had lots of race gear made for it.. I think the boat racing crowd really liked it... it would be closer for length and weight to the 240 engine... keep that nice working space in there...

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1980 240d
1979 300TD-T parts wagon ( redundant, I know )

I agree that dirt or algae in the fuel system will not cause mechanical damage to the engine. About the worst it could do is damage the injectioin pump if it was able to get past the fuel filters which is unlikely. The fuel filters just plug up and nothing, including fuel, gets past them.

P E H