Right, in this particular case I would recommend using an adhesive to attach the gasket to the pan (to the lower pan, the new part) before assembling. Most any paper or cardboard type gaskets I would recommend using the adhesive to attach the gasket, but it depends on the location of the components and therefor the difficulty of assembly. It's not required, but doesn't hurt either, and makes reassembly so much easier. On this particular location, I would use a few single-edged razor blades to remove remaining gasket materiel on the upper pan.
If MB offers a gasket or seal for a given area, then that's what should be used if at all possible. Many areas on the newer engines are sealed using sealants, Loctite 5900 is by far the most common. Only drawback to the 5900 is a fairly long cure time, we use 2 hours before exposure to oil as a minimum, overnight is better. It's only really any good for flat surface to flat surface mating. it would probably be ideal for where your upper pan mates to the block, and lots easier to reassemble, as the factory paper gasket can be a real tough one to get to stay in place when reassembling, although using a gasket adhesive to hold the new gasket in place, and letting the adhesive fry for an hour or two will usually aid tons in reassembly, gasket will stay in place nicely.
When using the adhesive to install a gasket, I usually cover the entire area, not just a few small spots, as you were asking about. I'd coat the entire area of the pan that the gasket presses against. I wouldn't put any on the upper pan at all, and also I don't feel that oiling a paper gasket of this type will help anything.
Gilly

I was one of those diy'ers that suggested using Ultra Copper RTV on this application - especially on this old of an auto. On a side note - I am running my 300D with a dented/rusted lower oil pan and don't really worry about it.

Heck, if you are in doubt - don't use the sealant, torque to spec and see if you have any leaks. Personally, on the 1985 300D - I removed and replaced the lower oil pan and used the Ultra Copper and don't have any oil leaks whatsoever. I have been using this stuff for years without any problem - BUT - you have to be extremely careful and do exactly as an earlier poster suggested - just go with a real thin film applied with a finger. You do not want to "gob" it on or you are asking for trouble. I have seen this stuff used on header gaskets successfully.

I do NOT use it on my tranny pan when I service the tranny on the E320.

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Jim

I got some Loctite "medium" Blue grade "thread adhesive". Is this the stuff you are referencing?

Thank you everyone for your help and suggestions. I have printed out all the threads to this post and will have them by my side when I do the replacement. I was planning on doing it in few weeks, that way I can do a filter and oil change at the same time. Even though I just changed the oil, I don't want to put the oil that drains - back into the engine. The tub I use to hold drained fluids has had every type of fluid in it, so I don't want to risk contaminating the oil with any other fluid.

I will certainly update this thread to let you know how the replacement goes.

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James

85 300SD 285k
Charcoal Gray/Grey MB-Tex

79 300CD 142000mi "Rabenshwarz"
Black / Black MB-Tex, Burlwood Int. TOTALLED - 10/24/02 --