Ironic! I am going to look at my neighbor's car just like what you mentioned. His is the 1987 300D also. My mother had a 1987 300SDL. Great car. I am not sure if his is the 5 cylinder or the 6. Mama's was the 6. This guy only wants $1000 and he is the original owner. It has been sitting for 5 years because it would not cut off when you turn off the key. Mama's did that and it was a vacuum solenoid.
As to your question, I have heard bio will "rot" fuel lines if they have been previously run with regular diesel. It also acts as a "detergent" and will flush impurities out of your fuel system, in turn clogging the fuel filter and possibly the pump, lines and injectors. If you are getting a good deal on it and it runs on regular diesel, but just leaks, it is definately a keeper. I am not sure how hard the pump seals are to replace, but the lines are not bad. I will let you know if I get my neighbor's car. I am going to look at it this week.