I had an '81 300SD (126 body turbo sedan) project a few years ago. I sank a lot of money into it and didn't get much of it back when I sold it, but I did learn a lot about Diesels in the process. If you buy one, buy the best one you can afford! Check carefully for rust underneath, and for leaky rear windows that will cause water to creep into all sorts of places and rot things out.
The turbo Diesel was probably good for a 0-60 time of about 12 or 13 seconds and would wind up to about 110 MPH. Not bad, and an absolute screamer compared to the non-turbo Jetta Diesel that I had next. The engine was bulletproof and always started as long as the glow plugs were in good shape and fresh, treated fuel was in the tank. I used the block heater in the winter too.
It didn't get great gas mileage for a Diesel in my opinion (maybe 27 or so on the highway) but it was heavy and I had a heavy foot. An overdrive 4th gear would have helped too (4th in the automatic was not an overdrive.)
The ATC A/C system can be a headache if it needs work as can vacuum piping as mentioned earlier. The cruise control modules and window regulators are a common trouble spot as well. I enjoyed the car but the tinworm took hold underneath and I didn't want to deal with rust repair to make it pass Pennsylvania inspection so I sold it to someone more able to deal with the problem.
A sluggish turbo Benz can often be a caused by a clogged pressure sensor line that goes between the intake manifold and the boost enrichment device on the fuel pump. Carbon and junk dumped into the intake from the EGR valve clog this up and the pump no longer "sees" the boost from the turbo. It takes about 15 minutes to clean out the line and manifold fitting. I did this to a friend's sluggish 300SD and the difference was like night and day in power.
The transmission control cable adjustment that "tells" the transmission what the throttle position is can also make the car sluggish if there is too much slack.
I would buy another if it was sound and rust free. Just don't expect 40 MPG, and if you cannot do the work on it yourself expect large repair bills when things need attention. IMHO, great old cars.
Andrew S.