What cable?
 

Brian, my factory manual is calling the cable above the one you had me adjust the bowden cable. The end of the cable the manual calls the bowden cable has a spring around it which rests against a bracket, and is retained on the end by a circular clip. The manual states that the adjustment of the bowden cable is done from inside the car. I know you know your stuff, but this has me confused. Why is my manual calling the cable below the oil filter housing the "control thrust cable" and the cable above it the bowden cable? The cable you had me adjust definitely reduced the amount of pedal required to accelerate the car. Will adjusting the bowden cable do this? I'm confused since I have confidence in you but my manual labels things differently. I hope you can enlighten me, since I would truly like to understand. Thanks so much for your help. I could not own and maintain this car if it weren't for you and guys like you on this forum. As it is, I am having a great time learning and working on this car!

I can only reference the W126 and the descriptions that you have provided don't match with that vehicle. If you have a second "control thrust cable" that is separate from the "Bowden cable" which allows the transmission adjustment, then, I'm unsure of the purpose of this second cable. Maybe some other W124 guys can chime in and fill in the blank here.

On the W126, the Bowden cable is adjustable right on the bracket by turning the white adjusting nut. It provides increased or decreased throttle pressure within the transmission.

Cables figured out
 

I think I have it figured out. By examining my manual and the linkage itself, it is evident that what you called the bowden cable is indeed the bowden cable, Brian. It appears to be interchangeably referred to as the control thrust cable and the bowden cable in my factory manual. Call it what you will, it clearly leads down to the tranny and upon examining the linkage, one can see that adjusting this cable will change the relationship between whatever it does in the tranny to the position of the throttle. The confusion came in when my factory manual (evidently incorrectly) also referred to the cable that goes from the pedal inside the car to the throttle linkage as the bowden cable. Oops. I don't know what the cable from the pedal to the throttle linkage is supposed to be called, but I'm guessing it's not the bowden cable. This cable from pedal to throttle linkage just actuates the throttle, it would have no effect on shift characteristics. In the manual, they talk about adjusting it to set the idle stop. I plan to adjust my throttle linkage and bowden cable according to the procedure in my manual (except I will not be confusing the cables like they do). Upon driving the car today, I noticed that I was getting a slight 2-3 flare. I was not getting this before, and I assume that adjusting my bowden cable has changed my shift characteristics enough that I will be able to turn my vac amplifier down from its maximum vacuum boost setting. I previously had to have the thing cranked all the way up to get my shifts acceptably soft. (yes I did check with my vac gage to make sure I was turning the screw on the vac amp the right way) Anyways, it seems that adjusting the bowden cable was exactly what the doctor ordered.