I haven't checked myself, but someone who did claimed that with the engine at normal height a 617 valve cover would stick up through the R107 hood two or three inches. I once saw pics of a 107 on eBay UK that clearly had a 617 in it, so it is possible, but I don't know what the ground clearance would be. Seems like a 602 or 603 might fit better.

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'79 300SD W116
'86 190E 2.3-16V W201
'92 300D 2.5 W124
'99 E320 4MATIC S210