Reply to my own post: turned out that the slide switch was bad. A replacement from the dealer ($73) fixed the problem.

Kurt

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- '79 240D - engine swap complete! Engine broken in! 28-31 mpg! Lovin' the ride!
- '86 190D (W201-126) - 2.5 NA engine, 5 speed, cloth interior, manual climate controls, 33-34 mpg (sold to forum member).