With a car that old, the camshaft and lifers are very likely shot. Lifters can make a ticking noise. I would also suggest you run some lighter weight motor oil for a few hours, then drain and refill it with correct oil. That will clear up any sludge that may be preventing oil from properly getting to the top end of the motor. Also, if I recall correct, the MB of that era, especially diesels, had mechanical fuel injection. It is very possible the injectors are in need of service or adjustment (no easy task on that system)