The 300SD is the first automatic I've owned, and I only bought it because I liked the car so much that I was willing to give up my tradition of driving stick-shift only.
I do think it would be awesome with a manual - it's got a lot of meat, and the way manuals rev up and rev down for shifting, it only makes it sound more powerful and thrilling!
But also I have to say that I haven't been annoyed with the auto tranny that's inside this 300SD - that's my big compliment to this car. I agree with Brian that the shifts are indeed well-metered and MOST of the time it shifts like you want it to and responds to the amount of throttle pretty well. I also found gear 3 and 2 to be REALLY cool