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Don't do it. The W203 was one of the low points for Mercedes quality.
I have an '04 C320 4Matic wagon and I am very pleased with it (bought it used and now it has 125k miles). I have heard that the C240 is a little underpowered. If you are looking at wagons, have you thought about the E46 BMW 3 series wagon (can't stand the look of the new 3 series) or the B6 Audi S4 Avant? Both are on my list once the C-Class gets tired.
Geez, were we separated at birth or something? That car has been on the shortlist every time I've shopped for a car over the last five years. I've always ended up with something else, though.It's no W124 in terms of quality, but it's not as horrible as some say, and they are at an age where the bugs have likely been ironed out through the previous owners' ownership, I wouldn't worry too much.
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