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That's a clean looking car and like speeder says, if compression is good and you can do a leak down, go for it. That body style always struck me as very stately.
If you're really not worried about speed, but want something reliable, get a 240d. They are absolute tanks and stupidly reliable (I drove one 80 miles home with a massive leak in the fuel system), but they also have the vacuum systems from hell. When I first got my 240, it wouldn't shut off when the key was turned off. It was a vacuum leak that I eventually plugged with a golf tee and a zip tie. The auto door locks don't work now, but it's just my ol' reliable stand-by car...
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