I've seen pictures of small-block Ford v-8's in 240D's, but really I'm not looking for monster power. If I can find a used running original diesel, that's what I'll put in. But if I can't, something like a v-6 would give adequate power and hopefully be easy to fit.
I'm somewhat torn, actually. The original type engine would be easier to install, plus it's, well, original. But having more than 67 horsepower sounds pretty appealling, too. We'll see, I haven't been able to do any serious searching yet.
George Davis
'69 280 SL Euro manual