Besides possible noise? I can't get the back to sit the way I want so I am considering either cutting the spring a bit or removing spring pads.

Leaving out the pads is not going to get you much closer to the ground, if that's what you are trying to accomplish. A shorter stiffer performance spring is what you are looking for. Pads prevent metal to metal contact on the spring seats, keep the springs from "walking" around and wearing excessively.

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Jeff Lawrence
1989 300e
2000 Dodge Grand Caravan SE
No matter what you fix, there will always be something else to fix..
"Warranty" is just another way of postponing the inevitable.

I do have aftermarket performance springs made by B&G Suspension, but it doesn't sit very low in the back compared to the front.

If you like the smooth but solid feeling of an MB, you WON'T like the feel of the car without spring pads.

Good luck,