Engine looks ok to me, considering it's age (approx 15 years). My car is a late 97, and the engine doesn't look an awful lot better than yours. But it has done 150000 miles, never failed an MOT, nor (touch wood) has it ever had anything wrong with it... I wouldn't worry if I were you.
Have you had it serviced and MOTd since you bought it?
Always make sure all your fluids are topped up (brake, steering column if you have PS, Oil, Radiator etc....). There's not much more you can do really apart from cross your fingers...
