Date registered: Dec 2012
Vehicle: 89 190E2.6- 5-speed Manual, 95 E320 Sportsline-sold, 2001 E320 4matic Wagon-sold
Location: San Jose, California
Mentioned: 9 Post(s)
Quoted: 536 Post(s)
You already mentioned it but I would highly encourage you to pop open the valve cover and inspect the moving parts (cams, rockers, etc).
Just the look of what's under the valve cover will tell you a lot about that engine. See if there are any wear or scoring in the cam lobes. It is a young engine but you never know. All lobes should be shiny and new. I just had to replace my '89 cam/rockers/etc at 180K. They looked sad and in desperate need of replacement. My car was very well taken care off as I was the original owner.
Also see if there is any rust at the hose connections. Rust is another bad sign.....