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Swapping in the engine using the factory computers will work as long as you supply the computer with all of info. it wants to see. From my experience, the cars with distributor ignition (up to '95) are not to complicated, but as mentioned before, if the car has ASR, you will have to change the parts on the engine that are ASR related, such as, the cruise control actuator, throttle body, and throttle linkage.
The other thing to consider is that most of the older Mercedes chassis were designed to have an engine with a front sump oil pan. The engines in the W140 chassis all had mid-sump oil pans to my knowledge, but that can always be changed.
It would be easier to use the engine from a R129 500SL. The '90-'92 models are CIS injection though... which is always a bit temperamental. However, the '93-'95 models are LH injection.
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1998 E320 Wagon
1992 300D 2.5 TURBO
1991 560SEL M119.960
1986 300SDL TURBO
1992 500SL Parts Car
1991 420SEL Parts Car
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