Nice score on this car. It looks like mine without all the rust! My rear window is leaking as well, the rubber gasket is dried out and cracking. I called a glass place and the gasket was very $$ to replace. I found replacements online at
www.OEMEuroParts.com for $40.00. (Glass guy wanted over $100 just for the gasket). They told me to buy my own and bring it in and they would replace it - labor only. Nice ha? Im also replacing the front gasket at these prices. Good luck with the car. I think the W116 has much nicer lines than the W123's.
Bert
PS - Do the gaskets soon. Mine is starting to smell musty!