I think that Canada and the USA have similar regulations with California being the exception.
I have a 300SE ( M 103 ) which is a great engine. The one I'm driving right now has just shy of 300,000 KM on it and it still runs well. Last time I did a compression test they were all within 10 PSI pf each other at close to 170 PSI. Interesting design with the cam shaft actually under the rocker arms. Gives it a sort of hemi combustion chamber as the vavles are canted inward. Only problem I had with it was when the lower portion of the rad blew out and the engine over heated. We pulled the head off, got it straightened, did a valve job, put liners in the exhaust guides and put it back together. It almost quit using oil after that.
One interesting side note:
One day about 3 years ago, the car simply died on the side of the road. It kept running but had no power. I tried everything I could think of. Sometimes it would run fine when it was cold but it would loose power and go into limp home mode once it warmed up a bit. This was a new car to me filled with all sorts of electronic gizmos and tons of wiring so I wasn't sure where to look.
Eventually, I found that if I turned the ignition of really fast and then turned it back on, the engine would often run properly - for a while. No one was ble to help me figure out what was wrong. The car had passed it's E test not more than a month before so I figured all those systems were working properly.
I tried a fuel pump relay, distributor cap, new wires, coil, spark plugs, fuel flter, EHA, and although there was some improvement, it still didn't fix it.
I did notice that it ran OK when stone cold or when I had it warmed up really well. Everything in between was taking a chance driving it. This led me to my eventual conclusion of what was wrong.
Anyone want to hazard a guess? ( if you know for sure, hold off with your answer so we can give those with an interest a chance to try their luck )