I have a '95 E420 and generally love the car. The corner handling isn't breath-taking (kind of scary at times), but the acceleration and highway touring is amazing. Compared to '97 Lexus LS400 - the Lexus shifted smoother, but V-8 in the E420 is substantially stronger and smoother. The M119 is a great engine and is supposed to have good longevity.
The newer E's (w210's?) have better cornering and seem more nuetral. But, I don't like the 5 spd automatic - seems to downshift more frequently. I've only driven a couple and not for more than 10 miles, so that's just an offhand opinion.
My interior is black and I really prefer the tan and ash interiors, the black makes the car feel smaller on the inside. I have the rear sun-shade; it was a cool gadget at first but it rattles alot over bumps and I seldom use it. I really suggest heated seats - my seats are COLD and send a chill through your body. If your into stereo systems - skip the premium stereo package and just put in your own system later.