I just purchased an 86 190e 2.3-16V. Upon inspecting the car I realized that when jacked up, the rear wheels are not locked together as I would have inspected with a limited slip differential. Did this car come standard with limited slip and if so is it not a clutch type? If is a clutch type does it require any special oil or is standard Hypoid gear oil OK. Thanks in advance for your help

Your new car has a clutch type "Limited slip". It does require special fluid, but sounds like the clutches are worn. Try standing on the Accel pedal & see if you get 2 black strips from the tires!!

That's the best reply I've seen all day!!!
I've got to run out and try it with my car.
Stand by for a full report...