I have a 2001 E320 with the same problem. When the passenger seat is occupied, the Airbag Off light comes on and the SRS light on the dashboard lights. When the seat is not occupied, both lights remain off.

I would rather bypass the sensor (leaving the airbags active) then pay to have my seat taken apart. Please let us know if there is a way to jump the connector with a resistor or wire.

Thanks