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A t56 or a tko or a magnum are all good options. The arguments for and against are based on cost vs reliability, gear ratios available, feel of the ride and will it fit in the car w/o taking a hammer to the tunnel.
I like the getrag s420 6 speed for its elan and the fact that I have one in good shape. It will be tossed when it needs a rebuild because that isn't at all a cost-effective move. But until then I will enjoy it.
All of the above transmissions will work with what's being done here.
On the M120 front, a quick web search for "mercedes m120 flywheel" turned up a picture of the crank bolt pattern. The location of the dowl is different to the M119. Knowing things like that up front helps.
-cth
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