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Thank you both for the replies.
Sugar Bear: at first I was going for a complete engine rebuild, thinking that it was a straight forward engine to rebuild and therefore not too expensive. Boy was I wrong! I looked online for some of the components and I think now I might just make the best with what I got and see what happens before buying parts.
97 SL320: You hit the nail on the head about the nasty additives. This engine stinks like you wouldn't believe! Most of the awful smell comes from the oil.
I have yet to drain it by the way (have to deal with a striped sump bolt first...).
Good to know that the camshaft might be reusable.
Also, upon further inspection I might have an explanation for the "scratches" on the third pic (they do have a slight rise around them, by the way): The adjusting bolt on that follower was pretty much destroyed. So a mechanic might have had quite the struggle, possibly slipping the wrench, and gouging the cam.
I haven't looked at all the cam followers yet, but the couple ones I did looked all right (I'll post more about them later).
I'm posting more pictures of the disassembly process below.
This engine had a hard life by the looks of things...
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