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The dragging noise and loose cable could also be the parking brakes in the top hat section of the rear discs. Have them checked as well.
Then the front discs could have a lip on them and if the pads are 'low' the metal backing plate would contact the lip on the disc.
It would be best to take the car to a competant MB shop, including the dealer, and test drive the car with the tech. Only then can a proper diagnosis be done.
You life depends on the brakes.
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Regards
Warren
Currently 1965 220Sb, 2002 FORD Crown Vic Police Interceptor
Had 1965 220SEb, 1967 230S, 280SE 4.5, 300SE (W126), 420SEL
ENTER > = (HP RPN)
Not part of the in-crowd since 1952.
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