My 92 190 was jerking when shifting, and making a clunk after backing up, shifting to drive and giving it gas. The mechanic rebuilt the entire drive shaft and the shifting was backt to normal but the clunk was still there. He suggested a transmission service, which didn't help. Then he said it probably needed a rebuild. $3000 later it still clunks and now has the added problem of sticking in 1st gear when taking off with a cold engine. He says this is normal. I feel like I could have stopped with replacing the drive shaft and would have saved $2300. Can you advise me if anything can be done about the clunk and now this new issue of sticking in 1st gear?

The clunk may not be the tranny at all. Excessive ring and pinion clearance in the differential will produce a clunk. You should be starting in second, and there can be a delayed upshift until your car warms up. Did I understand you to sat the trans was rebuilt as well as the driveshaft. Whew!! I would go back and have them check the rear end for excessive clearance..

holding 1st is normal...
 

when the car is cold so that the cat warms up faster. Shouldn't take too long though, maybe an 1/8-1/4 mile to warm up and shift normally after that. I also agree with checking the rear end dif again, bring it to a benz place and put Redline syth oils in the tranny and rear dif to smoothen and quiet things out...my old/sold '92 190E 2.6 started making noises at 120,000 and those fluids made a noticeable difference in my tranny; yours may have more issues but try it, cheaper than another re-build or new tranny at this point. Somewhere I heard those trannys should last 200-300K miles with proper fluid changes...mine was OK at 136K when sold. tell us how you make out.

Jim

1992 500E
1986 Scirocco 16V
1995 Volvo GLT
1999 Chevy K-1500
1995 500SL (very soon)