Thanks, you were spot on. The ambient temp sensor had broken loose from the piece that mounts through the dash. I removed the assembly from the dash and glued the sensor back into it. The hose was completely gone. I found an article that showed a picture of the hose and how to replace it.

http://www.benzworld.org/forums/attachments/r-c107-sl-slc-class/316974d1277965272-560-sl-cabin-temperature-sensor-hose-560-sl-cabin-temperature-sensor-hose

Thanks again for all your help,
John