SO what should I do? THere has to be a way out of brake squeal. IF you see an average car on the road, very few squeal. I bet if I take any car at the dealer out for a drive, none of them will have brake squeal. A mercedes car's brakes should not squeal - even Hyundai's don't squeal. If correct pads and rotors are used, and correctly installed, they should not squeal.
Thanks for your responses. I shall take it back to the dealer - just want to drive around a little to make sure he doesn't give me the argument that it will go away if I drove it a bit.