I don't know much about the engine, but I know that when ever you look for a truck or even an RV, you should always get an oil analysis (OA), have the thing run on a dyno to see what shape it is in and have the ECM dumped and printed out (this doesn't apply to your situation). This is beside having a good mechanic look at the engine and drive train.
The Dyno and OA will tell you about the condition of the engine, specifically looking for problem of metal in the oil, etc. The dyno will measure the power it has but more importantly what is called
Blow By which is a measure of wear of the cylinders.
I just went through this for a freind, looking at a truck with a C15 engine in it for him. The owner claimed that this and that was done on it (even hasd paper wpork from a dealer in Texas) but the OA revealed that the bottom end was falling apart and the dyno was no where near 60% of the rated power with higher than normal blow by.
Most of the time this costs about $200, and it is worth it if you don't want to get stuck on the side of the road.
OH and dont forget the mechanic. If he says not to bother getting those things done, find another mechanic.
Piper, your too quick