I appreciate all the input. The oil change guy has been my regular for over five years and he is the one who showed me the hight difference. He didn't have the exact one in stock, which is why we went with the alternative filter in the first place. It is a Hengst filter and though it is a little shorter than it is supposed to be I feel it is ok. The oil flows into the filter and out through the bottom so I I don't see this as a major problem. I originally posted this thread before I looked for myself and I can get the right parts during business hours. He changed my oil at 7 pm on saturday so we were in a bit of a pinch.

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1982 300D Turbo "Helga"
380,000 miles