Its not bad for a 300tdi from a dealer.
I definatly wouldn't get it if it has a N/A engine in it, it aint that cheap. if you dont mind doing a bit of work then i'd keep looking as there are some real bargains about,
I got a 1996 300tdi with a rebuilt turner engine in it for £600, just needed inner wings welding up.
I nearly bought a 1998 V8 last month needing a bumper for £400.
My mate got a 200tdi needing a boot floor for £400, see here http://forums.lr4x4.com/index.php?showtopic=34805
There's a 2door 200tdi down the road needing a boot floor up for £500, PM me if your interested as it's only 20mins from colchester.