Yes, interference engine, but with a timing chain not belt. It's a reasonable motor with a really bad reputation that started with the B27 in the late 70s. The first 2 generations of the motor - B27 & B28 were junk. The B280 in the later 760s ('87 onward? Not sure...) is a refined, smooth-running & durable motor but it's hard to find mechanics willing to work on them, and prohibitively expensive if something major needs to be done - like head gaskets. It's also not a sure bet that it'll run much past 200k miles unless it's been treated well - coolant and oil changes as scheduled, since the block is aluminum, coolant quality is more of an issue than with the iron red-block motors.
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Chris, Dartmouth NS Canada 70 M-B 280SE, 83 245DL, 84 244 turbo, 90 780 turbo, 92 VW Golf, 90 740 Rex/Regina