Hmm....

My 1975 W114 280 gasser has both a Mechanical Linkage --And a Vacuum modulator.....

As to that item in the oil-pan, could be anything. Maybe its even something thats gone down the filler-pipe.

Only way to find whats wrong is by logical fault diagnosis and not by jumping to conclusions, because you found paper shreds in the sump!
--The oil and filter were clean so O wouldn't worry excessively

You'll need to check various pressures in the transmission, this will indicate where/what the fault is.

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http://i190.photobucket.com/albums/z...0TDnoplate.jpg

Alastair AKA H.C.II South Wales, U.K. based member

W123, 1985 300TD Wagon, 256K,
-Most recent M.B. purchase, Cost-a-plenty, Gulps BioDiesel extravagantly, and I love it like an old dog.

W114, 1975 280E Custard Yellow,
-Great above decks needs chassis welding--Really will do it this year....