If it was a $4500 conversion it should be a vapour injection system. They usually don't interfere with engine diagnosis because they 1. don't run on gas when under a minimum engine temperature and 2. follow the petrol tuning closely enough to not require any funny tricks. I'd be asking the seller what exact brand and type of LPG kit was fitted.
As to the mileage, 300K is a lot for a P38 engine and an engine rebuild would be due around now, based on my experience with these things. There should be people able to properly do up an engine for less than $8500 but it depends a lot on how much needs to be done. A bit of moisture under the cap can mean anything from too many short runs only to a cracked block.
Oh and the OBD2 port may be present but not functional, many Oz spec 4WDs and commercials had the ports for other markets. I believe they weren't required in Oz until 2004.


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