Check out this thread:

94 E320 transmission rebuild

If you have the case where the B3 piston is impacting the K1 clutch carrier, your tranny will have ground up aluminum in it. If that's the case, I would expect more problems sooner rather than later.

If your tranny has a known history of fluid changes per the MB schedule, and is otherwise in good operating condition, you might be OK just to replace the B3 friction discs. On the other hand, a complete rebuild might also be recommended. I had this discussion with myself not to long ago--just read the above thread.

If you are likely to opt for the complete rebuild, it probably dosn't matter if you continue to drive the car as is. Any further damage you do by driving would be addressed with the complete rebuild. If you are likely to try the B3 friction disc only rebuild, then I would recommend doing it sooner rather than later. This would reduce the chance of additional damage that would not be corrected with just a B3 friction disc replacement.

Just my opinion......I'm not an expert.

J. M. van Swaay

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1994 E320 Wagon, 230,000 miles
1995 E320 Sedan, 106,000 miles
1994 E500 Sedan, 79,000 miles