Wow, spotted someone from Newport News, VA! Never thought I'd see the day.

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1998 Ford Escort ZX2 5 speed - 279,000 miles My Daily

1992 Mercedes 300D 2.5 202,000 - Pure junk
2000 Mercedes E320 Black - 136,000 miles - Needs repair

Don't forget to grease the screw and threads on the spring compressor.

I agree with what's said above. Try shocks and if that doesn't solve it, replace all of the bushings in the rear end. I might even consider replacing all of them anyway. I've had this problem before and it's always come down to the rear suspension being worn out, not just shocks.

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Current: 1975 450SEL, 83 300D, 88 Yugo GVX, 90 300D OM603 swap, 91 F150 4.6 4v swap, 93 190E Sportline LE 3.0L M104 swap, 93 190E Sportline LE Megasquirt, 03 Sprinter, 06 E500 4Matic wagon.

Many thanks for the responses...

Believe me, my plan is to replace everything suspension related, front and rear, by Thanksgiving. I'll spend the next 6-8 months collecting parts. I'm just trying to determine if there is a fairly easy "short term" fix, or do I just hold off for the fall.

I'm thinking I'll go ahead and do the rear outer lca bushing... since that will save my tires.


Notes on R&R of Outer LCA Bushings (W124 and others)

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1991 300D 2.5 "Rocinante"
2002 Golf TDI "Teen Spirit"
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1984 300D
1966 Mustang I6 3sp
1985 Mazda RX-7 GSLSE
1982 Toyota Supra
1977 Datsun 280z
1971 Datsun 240z

The short term and long term fix is two rear shocks. That is all it took to stop the rear inside edge tire wear and the rear end twitch on bumps, on my car. I wish I had done it a set of tires earlier.

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'97 E 300 D

I recommend using Lemforder/Corteco for all of the rubber bits. Dropping the rear subframe is really pretty easy as long as you have an impact or good breaker bar to get the main bolts loose. I would recommend wearing goggles when dealing with the fuel lines, I got gas in my eyes first time I dropped the rear subframe.

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Current: 1975 450SEL, 83 300D, 88 Yugo GVX, 90 300D OM603 swap, 91 F150 4.6 4v swap, 93 190E Sportline LE 3.0L M104 swap, 93 190E Sportline LE Megasquirt, 03 Sprinter, 06 E500 4Matic wagon.

Well, you've already stated that a trailing arm bushing is worn and bulging. My experience with these is, if it is visible, when you get it apart you find it's even worse than you thought.
You could spend $$'s for new shocks or about $50 for all new bushings + about the same amount of time.