Everything that you describe is what is the norm for these cars. I just had a rebuilt trannie put in, and well, it does shift tight and hard. However, if I take it easy on the gas, it tends to shift at about 3500-4500 rpms, it is as smooth as butta. Mine runs at about 100* celsius when I am in traffic, but other than that, it is what I would call a perfect daily driver. I am going to replace my oil pressure sending unit, as it reads 3 all of the time.
Also, I also feel that the W124 came a a high point in Mercedes Benz engineering. I feel it is one of the most solid cars ever built, and one of the safest. (Ask me how I know
) She is an awesome daily driver, much more than some Hyundai or similar make can offer. It is just an exeptional piece of machinery that goes above and beyond its call.
If you go back through my posts, you will find the one where I hail the W124 platform. You will also find why I know the reason why they are safe cars.
Also, welcome to the brotherhood.... Congrats on the Purchase.