Well thanks for the advice. Really trying not to pay the dealer so much for something they should have recalled. I may try rebuilding the entire harness myself. But initially, I may try to repair just what needs to be for now. Keep in mind this is the 2nd time the headgasket has been replaced...the harness survived fine 3 years ago. And even unwrapping it a bit reveals severely cracked but perfectly intact insulation being held in place by the tight black tape wrap. Nothing is turning to dust...I don't think my harness is in as critical condition as some apparently are. The only areas where the insulation has basically fallen off the harness is the few inches where the plug on top of the water pump is, maybe one other exposed spot. There is absolutely no misfiring or running concerns at this point, just the one circuit affected. I'll update on the progress...

__________________
________________________
2002 Mercedes-Benz E320 4Matic
1995 Mercedes-Benz E320 Wagon
2005 Land Rover LR3 V8 SE
1999 Audi A8 4.2L quattro