If the picture of the rear chassis is anything to go on in the photo showing the tow bar I would say it is in pretty good condition and has probably been looked after.
The V8 is a nice engine but loves to drink, it is very reliable but still quite gutless for the amount of fuel it drinks. The TDI or TD5 would be my pick, the TD5 with a mild tune is a far better engine the a std 3.5 V8, it has more power and uses a hell of a lot less fuel.
The only real downer of the V8 with air-con is you loose the flapped air vents on the bulkhead, which I really like as you do not need to use your air con half as much with these and when off road I usually drive with the windows down and the flaps open, unless the temp is into the 40s then I leave the AC going most of the time.
An aussie escaped from london, now in Dubai.