Sound like a guide rod bushing. Pretty simple fix on the W126 chassis.

With the car off the ground grab the front wheel at 9 and 3 O'clock and pull forward/rearward. Look for movement in the rod that extends to the large bushing in the aluminum casting.

The casting can be removed by removing the three bolts per side on the rear cross brace, then remove the three large casting bolts. Loosen the clamp on the rod and count the number of turn it takes to get it loose from the bushing. Install the new one the same number of turns to get the alignment close.

With the casting off you remove the bushings rear cover (four allen bolts) then drive the bushing out with a hammer.
Use a large hose clamp around the new one to compress it to get it started in the casting. The cover bolts will press it in the rest of the way.
Make note if there is a drain groove on the new bushing. It goes toward the bottom.

Good luck.

This forum is simply amazing and has saved my bacon a million times.

Thanks again for all of the help and quick responses; looks like I'll be shopping for the guide rod kit; with luck Massachusetts will give us a few good days of weather and I can get back to driving, as opposed to rattling down the road.

-James F. Smith

For those looking for Whiskeydan's procedure / photos, you can find them here:

http://www.peachparts.com/shopforum/showthread.php?t=145762&highlight=guide+rod+whiskeydan

Again, thanks for the help!
Best regards,

-James F. Smith