If memory serves, the M103 300E all had the 177hp SOHC engine through 1992. I don't think the US versions were down on power.
Your "quarter mile" is inaccurate, as there is no way your car (no matter how steep your final drive) is doing 165 km/h at the end of the quarter mile. My C36 with 268hp could just break 160 km/h in a quarter mile. If you could, you'd be running with the C36, E500 and AMG crowd. Unlikely. For a 165 km/h trap speed, you'd need about 275 or so ponies.
A 300E should be able to run mid 16 sec quarters with trap speeds in the mid-high 80's for mph. Even with a 4.11 gear set, you don't have the power to pull 100mph. You'd just run out of each gear faster, with your car huffing and puffing at the finish line.
An early (read: light) 300E in good tune with all it's ponies still present, running a 3.27 or 3.55 gear might break 15's, but forget 14's. You're about 100hp shy.
1998 C230 "Black Betty"