I checked my oil on my prize 83 240D after i saw oil on the driveway and found the oil level 1/2 down the dipstick.
How many quarts was I low? Any possibility of engine damage because oil was low? I love this car--I rebuilt the engine myself...

My guess is about 2 quarts. Once I was surprised by my
300SE with same reading.
Try taking several readings. Often one can get
different results over a matter of minutes.
I believe that a past post by a tech stated that
real damage occurs if it bottoms out. This was with regards to the low oil indicator lamp which I believe
goes on when there is minimal oil left, but enough so that the engine does not go postal. Minimal meant
in need of over two quarts oil.
Also depends on how long you travelled with low oil
and whether it was a progressive loss.
Nice to hear that your 240D project is doing O.K.!
Happy New Year!

Two important points to remember about oil - pressure and quantity.

Low pressure can produce bad results quickly, like bearing damage.

Low quantity can lead to longer-term problems, like overheating, because there is not enough oil to share the work.

I think oil level anywhere between ADD and FULL marks is OK. If you lost oil, but not pressure, you're probably OK.

BCingU, Jim

If there is oil on the stick you've got plenty for everything but sustained autocross. All that is necessary is that the oil pump pick-up stay submerged. Jim is right about the use of oil to cool the motor. Since MBs are designed for use where there are no speed limits the safety factor here easily covers any normal illegal driving for us. The fact that you have a 240D might stretch that issue in the mountains.