Originally Posted by 97 SL320

If this is the distributor I'm thinking of, it sits behind the water pump with the water pump being driven from the camshaft. ( it also has reverse cooling flow ) .

There was a mod that vented the dist to prevent problems. This engine was also used in similar era full size rear drive cars so parts should be common enough. Even with labor, I don't see the replacement being $ 1,200.