I have had a 1998 C250TD Estate for about 8 months now. I replaced a C180 Estate with the TD and it is an excellent motor. Very smooth, comfortable, powerful and fast but not as economical as a Passat or Audi. I average about 34mpg but that was below 30 before I had it chipped to 180bhp. On a long run I can just about get over 40mpg.
The only slight problem is the glow plugs, if one goes they are difficult to get at and whilst the engine is stripped you may as well change all five glow plugs which can be expensive. Also the rubber 'O'-rings on the fuel filter housing are prone to perishing allowing air to enter the system.
Treated well the C250TD engine will go on for along time, regular oil changes being the key to longevity.
The sound from the five cylinder is great under hard accelleration although some people think it can be intrusive. Whilst cruising it is almost silent.
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