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I posted this question 300SE Stall & No start after sitting on the 89 300SE and did some more searching on the forums. Seems a lot of the issues with a good cold start followed by a stall at idle when warm and then a no start until cold again have to do with the distributor cap and rotor. I bit the bullet and ordered the $$$ replacements from my MB dealer. Pulled off my old cap and found that the center rotor button in the cap was broken! It fell out of the cap and came to rest just below where the cap mounts. Saw it sitting there after I noticed it was missing in the cap. The MB branded replacements don't really look all that different from the Bosch replacements I had on there before. They said they were made in Spain just like the Bosch branded parts you get from the aftermarket. Time will tell if they are any more durable. So I replaced the cap and rotor and did a cold start and drive. The car had been sitting unused for a week and it ran fine with no stalling. So check your cap and rotors close if your having this issue. Attached are pics of the cap with the broken rotor button laying in it and the rotor.

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1989 300SE - Siegfried
2010 Toyota Tundra Crewmax
2005 Honda CRV

Gone but not forgotten
2001 F150 Supercrew - The Screw
1966 Ford LTD 390 - The Big G!
1995 Mercury sable
1986 Subaru DL
1982 Ford EXP - my first car