I just did what you are seeking to my car and am extremely happy with the result. By accident while researching conversion of my E420 to 500 suspension specs I found a guy who worked out a conversion for his 16V.

No need for the "blocker plate" for the hydraulic pump drive. There is a "key" that links the pump drive to the camshaft. Simply remove this key and cap the lines in the rear. The advantage of leaving the hydraulics "in place" is appearance of "stock", labor-savings of not removing all the lines, and installation of the blocker plate requires a new valve cover gasket.

As far as the actual changes "aft", the hydraulic struts were replaced with OEM 190E 2.6 SportLine shocks and the sway bar with an Eibach 16V rear sway bar. The result produces a little more rear camber but it is easily compensated for with 40 psi tire pressure. The handling is great with sharper turn-in/less understeer. Needless to say it was much cheaper than the ridiculously complex and costly hydraulic self-leveling setup.

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Charles Cleaver
1975 350SE + 1992 300CE-24 SportLine 5-speed + 2002 SLK320 6-speed + 1974 W114 280
1986 190E 2.3-16 (Decomm rear self-leveling suspension; Euro-code headlamps) sold
2004 Audi S4 6-spd - sold
1969 (2) and 1980 Porsche 911T, S, and SC - alas gone
1987 300SDL - Graf Spee; Euro-code headlamps; 16-inch 8-hole wheels - sold
1994 E420+(E500 suspension/E-code headlamps/PAD chip) sold
1968 250SE 4-speed (NICE car) - long gone
1962 220S 4-speed/column mount - long gone