1) Consider what you will but choose Bilstein and you'll be fine.

2) Yes. A floor jack and some hand tools are all you need.

Make sure you want the stiffer ride of Bilstein HDs. I find the new Bilstein comforts I put in my 300SE and 300SDL to be on the stiff side so I'm glad I didn't get HDs.

Sixto
95 S420
87 300SDL