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I've never worked on an M104, but on my M119, that oil quantity sensor plug is located just adjacent to the crank shaft. I wondered how oil could get out that tiny hole with it being so high above the pan. Turns out the hole is in perfect alignment with where the oil flying off the crank would probably hit. The attached picture is looking up at the sensor plug on the right side of the sump. I pulled the plug out slightly before taking the picture.
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1993 400E, 256,000 miles (totaled)
1994 E420, 200,000+ miles
1995 E420, 201,000 miles
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