This outlines the tranny problems I had/have on my 98 C230. As a final update, MBUSA replied to my letter by stating that they stand behind their area rep and dealer, and won't interfere if those 2 entities think there is no problem, and MB has a goodwill policy, etc. The trans still occasionally slips on upshifts between 1 and 2, or 2 and 3. Also, it sometimes takes its own sweet time (engine revving away merrily) downshifting while trying to pass! The dealer and factory rep told me to keep a log of when/where/how/date on these issues, and that if it ever fails "in a reasonable time after end of warranty" then they will "consider appropriate goodwill action"
(Translation: Go away, you're a problem!)
The dealership then kept delaying a refund of the Heritage warranty - for 3 months! Then I had the nice young lady from my teachers Credit Union credit card complaints/fraud department give them a call. Don't know what she said to them, but 20 minutes after I talked to her the dealer phoned me and very stiffly informed me a certified check would be sent FedEx to my residence that afternoon. I put the refund into a Trans Failure account, and plan on being a vocal and highly visible PITA to the dealer and anyone who will listen if that trans goes out before 100k miles.
Good luck with yours, but don't expect much from MBU$A.