This should be a typical m/c rebuild, and bench bleeding is always a good idea, but not really necessary on a single cylinder system.
The important thing is that you remove any pitting that may be present. Face it, this car is not a "spring chicken". The odds are that you will find pitting in the cylinder, and probably pretty bad pitting. Unless you have to drive the car every day, I would disassemble the cylinder and check the pitting. If it's not too bad, hone it and find a kit. If the pitting is extensive, find a master cylinder.
You may already have sources for vintage parts, but if you get desperate, go to kienle.com. I visited their facility near Stuttgart in September. I'm sure they can get you what you need, and I'm also sure it won't be cheap.
'01 C Class, Six Speed
'84 Euro 240D, manual, 533K miles
'88 300E 5 Speed
'81 300D Daughter's Car
Over 800,000 miles in
[This message has been edited by LarryBible (edited 11-10-2000).]