Sometimes when I shift into reverse, the car does not move right away, other times it is perfect. Also, the transmission does not always shift out of 2nd gear on time. Rpms get quite high in 2nd especially when cold. When I say second I mean the regular startup gear as MB's do not start in first unless floored. I have adjusted accelerator cable and the other cable that goes to the transmission. The transmission has a couple of leaks and I am going to be pulling it out to replace the seals and was wondering what else might be wrong?

While you have it out, you may want to replace the modulator valve and the bowden cable. These are the input devices and couldn't hurt to do them while they are easy to get to.

Hmmmmm,
I thought it was normal for the MB to stay in second when cold until the catalytic converter reached minimum operating temp. Is so?
Not going into reverse immediately was a normal condition also if the delay was no more than 2 secs. More than that and K1 was suspect. Is so?
Best,

The delayed shift cold is a normal function to warm up the cat. While you have the trans. out make sure and replace the o-ring around the front pump. When you have the front cover off to do this, inspect the thin large diameter friction plates around the clutches. These, I think there are 5, are called the B3 unit. B normally designates a band but in this trans, this function is done by discs. Look closely at the lip seal on the large piston that presses on this unit. Good Luck!