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If you put the starter in a vice, you can bench test it with 12 volts. Probably just a bad solenoid. Search the local junk yards for a good starter, any 850 year will do, I believe.
You are not done yet! Due to the previous owner's neglect of maintenance, I would check all of the vacuum lines and elbows. The oneway valves in the vacuum lines also need to be checked. There is probably enough sludge in the engine to keep the seals from leaking - do NOT use synthetic or heavy duty cleaner engine oils.
Check the tranny fluid, it should be dark reddish brown. You may want to flush it, along with the neglected power steering fluid and the very old brake fluid.
Lots of luck and have fun!
Klaus
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I still miss my 164 and my 854T. Just driving a V70R :)
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