Surfing around ebay I found an interesting auction. Its a 97' E420 engine and tranny. See here:
http://cgi.ebay.com/ebaymotors/ws/eBayISAPI.dll?ViewItem&category=33615&item=2416510040
Or for big bucks, this one:
http://cgi.ebay.com/ebaymotors/ws/eBayISAPI.dll?ViewItem&category=33615&item=2417633303
I'm not planning on getting it but it got me wondering, would it be possible to upgrade a W126 with a newer powertrain? Or is it a just whole different animal?
I found this rather amazing conversion done on MBcoupes with a 560SEC.
http://www.mbcoupes.com/memberscars/T/satishtummala/satishtummala.htm
It seems like a SEL would be easier to upgrade since the engine compartment is roomier than an SEC. What contemporary engines could fit in a W126?