Lee,
I agree, previous owner and/or shop did a crap job on replacement. If the brakes were as installed and run in as stated in the Manual they would be OK.

I will upgrade the setup, but would like to wait until I do the wheels/tires 1st to then give me a little more room it work with. MB Doc, To change this over to a 93-94 setup what would be required? Rotors,calipers and Pads? Is there more? Lines, sensors, bearings?

Like you, this car is crying for more wheel/tire. I even have 215-60-15 on it now and it could use more. Is ther a 16x7.5" wheel froma SClass that would work in this application?

Every MB I've owned is the same though. On every one I've upgraded to the next size in diameter and more tire. I wish we didn't have snow here, but we don't have enough that I would by a tire for it. I've used the Dunlops before and the 400E has it on ther now. On the Porsche I've got Mic. Pilots and they work good on that setup.

As far as the Transmission, It could use a little more refinement along with matching a rear gear that works for the US.

As far as Lexus cars, The one's I've drove, LS400,ES300, and SC400, They're great cars, just don't have the feel or build of a Benz. I just don't have the confident feeling when the car takes a set in the corner at speed. As far as refinement though they have done an excellent job. Control switches and knobs have great tacticle feedback. Electronics and other areas have great reliability. Fit and finish are superb.
Tranmissions are 1st rate (in operation).
They have taken the noise suppression to a new level.

Mike